But what to do about slow-selling older models?
On the one hand, Jaguar Land Rover (JLR) is on a roll these days thanks to new models like the Range Rover Velar and E-Pace crossover. Sales for both in markets like North America and China are more than meeting expectations. However, there's been a sales drop in some of its other models. What to do? Invest. According to Automotive News Europe via Bloomberg, JLR will invest some $5.3 billion in this current financial year on not only new models, but also in new technologies that include autonomous, connected and electric.
For the financial year that just ended, the company spent slightly less. This all comes at a time when JLR is facing some uncertainty in its UK home market due to the upcoming Brexit. However, parent company, India's Tata Motors, is looking beyond this with an intensified focus on its two most successful markets, hence the increased investment. "We will continue with over-proportional investment in new vehicles, manufacturing facilities and next generation automotive technologies in line with our autonomous, connected, electric and shared strategy," said CEO Ralf Speth. One area of concern, however, is that despite high demand for new models like the Velar and E-Pace, these sales figures have so far failed to offset a sales decrease in older models.
For example, sales of the XJ large sedan dropped last year in the US, which makes sense considering it's nearly a decade old and the fact demand for sedans is decreasing across the board. The XF sedan also experienced a sales drop last year and is already down this year as well. This doesn't mean it's time for Jaguar to kill off its larger two sedans, but perhaps to re-examine this particular segment. We've heard a rumor (that makes a lot of sense) that the next generation XJ will be an all-electric Tesla Model S and Porsche Mission E fighter. But instead of retreating, JLR is investing even more money than last year, a clear-cut sign there's a proper plan in place.