Freewheeling
With the F-Pace and now Velar and E-Pace, JLR's range is growing in leaps and bounds. But when will the India party kick off wonders Siddharth
HE NICHE BRITISH BRANDS OWNED BY INDIA’S Tata Motors – that’s a tag Jaguar and Land Rover are fast losing. Not because that’s not still true, but because they are now both so much more than that. When Tata took control of JLR, few thought Jaguar would become the robust brand it is today. Land Rover too has only grown in strength – and both brands now boast the widest portfolio of products in their history. Yet when you compare to their main rivals, they have miles to go. But Jaguar Land Rover is stepping on the gas now – with a production site coming up in Eastern Europe (Brexit notwithstanding!), investments made in flexible and modular aluminium architecture, and now substantial R&D being carried out in the realms of electric powertrains and technology like autonomous driving. Yes JLR is poised to step into the big league, yet the challenges of a foggy future that no one seems to be able to quite define right now will be its biggest hurdle.
To overcome this, Jaguar Land Rover must seek out partnerships and synergies – outside of what it gains from its parent Tata Motors. Having said that, let us look at why JLR is ready to launch as it were. The latest products have each fired, and not just in terms of volume but also margins. The steady yet definite upward movement of the positioning of its Land Rover products has not only been noticed, but has achieved success for the company. It has also created plenty of room for the brand to grow and proliferate. Would you have ever imagined a fourth Range Rover a few months ago? Well it was us in the media who assumed each of the new vehicle families within Land Rover would be restricted to three members each but Land Rover surprised us with the Velar earlier this year. Having driven the car, I can now affirm the company’s view on why this car was needed, and just where it fits in – both to the portfolio and the company’s business plan.
And then you have Jaguar – that took the leap across the sacrilegious chasm that says brands like it would never, should never, make an SUV. As other successful vaulters like Porsche and Bentley have proved, the idea is no longer considered a stretch let alone sacrilege (Ferrari are you listening? It’s really okay!). And so last year Jaguar launched the F-Pace. This is already the model destined to become the highest selling in the brand’s history. Sharing its platform with the Velar helps justify the development costs, and its success spawns new models like the I-Pace and E-Pace. Yes the I-Pace may seem niche today, but this Tesla Model X rival could suddenly help Jaguar accelerate into a space not many enjoy profitability in. The E-Pace though will likely become the model that (by 2020) could steal the tag of most-sold Jaguar from its big sibling the F-Pace. After all – compact and SUV are what spell the magic margin-richmantra for motown these days isn’t it? And the E-Pace hits exactly that sweet spot, with the promise of more ‘Pace’ models to come.
And the best part is that given the current size of both brands, all of this new expansion will likely create very little cannibalisation between them – instead conquering new buyers from other brands. The allure of the British marques, coupled with some industry-best design is helping each of them gain in pretty much every market – new and old – that they now operate in. So the big question for me is – when do we get caught up in all that excitement in India – proclaimed long ago by CEO Ralf Speth as JLR’s ‘ second home market’? Don’t get me wrong – we get pretty much every new product soon enough (barring a few like the convertible Evoque). But still JLR remains a very niche player – without the presence and reach of the German three. But that is starting to change, with more aggressive price repositioning and network expansion becoming the priority for JLR in India. It is something I am certainly looking forward to – not because I have any vested interest in seeing more JLRs on our streets – but only because it will challenge the Tataowned company to do more, and do it better. And competition is always good for the consumer in the end anyway, ja? ⌧
‘When do we get caught up in all the (JLR) excitement in
India?’