The business of selling luxury cars isn't what it used to be. Customers are no longer expected to leave dealerships in big, V8-powered sedans. Nowadays crossovers and SUVs reign supreme, and there is a growing expectation that they will be powered, at least in part, by electricity.
Some carmakers have already adjusted for this new reality. Buick and Lincoln are now SUV-only brands for the first time in their history. Volvo has promised that half of the vehicles it produces will be fully electric by 2025. Mercedes-Benz is staying busy adding new models to its EQ electric subbrand.
Jaguar is in the midst of carrying out its own plans for the future. For 2021, the British luxury brand has dropped the XE sedan and the XF Sportbrake - Jaguar-speak for wagon - from its US lineup. The XF sedan continues on with a reshaped front end and a significantly updated interior. Base prices drop by $7,105 to help mitigate the loss of the entry level XE, and all XFs will be powered by a turbocharged 2.0-liter, four-cylinder engine making either 246 or 296 horsepower. The XF is also Jaguar's last sedan standing, at least until a new, all-electric XJ arrives. It joins the E-Pace, F-Pace, and I-Pace SUVs, as well as the F-type sports car.
Jaguar has never been a major player in the American market. Annual sales have been around 30,000 units for the last two years. For comparison, that's about the number of cars BMW sells in a month. In the midst of the COVID-19 pandemic, Jaguar has sold a little over 16,000 cars according to data compiled by GoodCarBadCar. Of that total, the F-Pace accounts for 7,891 vehicles.
Both the XE and the XF Sportbrake have been slow sellers, so cutting them from the lineup makes sense as way to reign in expenses. Only 3,551 XEs found homes last year, and less than 250 Sportbrakes have been sold over the course of three years according to Road and Track. Jaguar's sister brand, Land Rover, has sold 52,335 cars so far this year, further accentuating the shift in consumer preference toward SUVs.
With so little market share, positioning itself as a sporty, electric alternative to mainstream luxury vehicles appears to be Jaguar's best bet. However it must act quickly. As mentioned above, Mercedes and Volvo are steaming ahead to an electric future, and Audi and Porsche have also released their first all-electric model lines. Jaguar needs to capitalize on its core strengths: distinctive design, motorsports heritage, and wholesome British charm to keep loyal buyers coming into its showrooms and attract curious new prospects to the brand.
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