But how long can this be sustained?
As a whole company, Jaguar Land Rover has been experiencing serious financial woes. The coronavirus pandemic only made a tough situation even worse. Fortunately, JLR has reportedly secured financing and continues to adjust to the new normal of living with the pandemic. But there's also another huge bright spot working in its favor: the entire Land Rover brand. What about Jaguar? Less so. How come? One word: SUVs.
You see, Jaguar has long been known for its sedans and sports cars, and only in the past few years did it enter the SUV segment. In fact, the Jaguar F-Pace is its best-seller with 15,000 units annually. But the rest of the lineup, including the I-Pace EV and E-Pace, are struggling while Land Rover thrives.
During an interview with Automotive News, JLR North American CEO Joe Eberhardt, acknowledged Land Rover's continued success in an SUV-loving nation whereas Jaguar can't quite seem to find its footing. In other words, Jaguar is being propped up by its sibling brand. Does this mean Jaguar alone in trouble?
"We have to do a better job marketing the brand [Jaguar] than we have in the past" Eberhardt said. "It is a very unique and extraordinary luxury brand and we need to communicate that to customers more effectively. Jaguar may not be the car for everyone."
Looking ahead, the next-generation Jaguar XJ will be radically different from any of its predecessors because it'll be all-electric. While this definitely sounds interesting, sales of the I-Pace have been disappointing, partially because gas is very cheap these days. Will this affect future XJ sales? Meanwhile, sales of the Land Rover Range Rover Evoque remain excellent.
The flagship Range Rover, of which the next-gen is also on its way, is also a strong seller. And then there's the reborn Land Rover Defender. Dealer inventory is already low despite huge demand. The reason? JLR's plants were shut down for two months because you know why.
"Supplies will be somewhat constrained over the next couple of months," Eberhardt added. "We were down and we are now ramping up slowly. We'll do our best, but I think we will be inventory challenged in the near-term future for sure."
As Jaguar gets back into gear, it'll be Land Rover holding down the financial fort, if you will. On the plus side, because of SUV popularity, there are plenty of Jaguar sedans and F-Types on dealership lots. "On the sedan and sports car side, because of the shift in the marketplace, we definitely have good inventory coverage at the moment."
Above all, however, Eberhardt remains firm that battery electrification will be "the powertrain of choice for performance brands," Jaguar included.