Local Jaguar presence gaining momentum
BY DANIEL GARDNER | 8th Feb 2016
After a sedentary period in numerous global markets, Jaguar and sister brand Land Rover are enjoying a resurgence thanks to a refreshed line-up of modern and technologically advanced models.
With the support network to match, Jaguar Land Rover Australia has its sights set on a greater portion of local fleet and government sales as well as the growing private consumer market.
While the big three German brands have traditionally dominated the premium end of many markets, Jaguar says its improving range of vehicles is featuring more than ever on buyers’ consideration set, but it is not easing the pressure on its rivals.
Speaking at the media launch of the all-new XF large luxury sedan last week, JLR Australia managing director Matthew Wiesner told GoAuto that with two sports sedans in its portfolio, the company was planning to secure a greater share of segments propagated by Audi, BMW and Mercedes-Benz.
“We have expanded our activities in the fleet and corporate world,” he said. “We see both XE and XF as important parts of that.
“Our German competitors have been quite successful in that space, especially the novated leasing space, so XE and XF have a role to play for us there, whereas previously we just haven’t had the products to play that game.” While significant fleet deals may boost the British brand’s sales, Jaguar says that with the end of local car manufacturing by the end of 2017, there is also potential in other areas, including Australia’s government sectors.
“That also extends into some of the state government and federal government spaces given that more and more people in the space have a user-chooser focus. It means there is a lot more of an appetite for European vehicles, especially given what’s happening with local manufacturing,” Mr Wiesner said.
“The prime minister is now getting around in a (BMW) 7 Series. We see an opportunity for everybody now to get into that space.” Mr Wiesner said the company’s forward focus was more important than dwelling on the past and that its growing customer base in Australia was drawing more attention from JLR HQ in the UK.
“We are getting a lot more help,” he said. “We are now in the top 10 markets globally and this year we will end up around 14,000 units with both brands combined.
“We know what we’ve got coming and the developments that will be arriving in the next model cycle, we know we are going to be in the right space. It’s more about looking forward than looking back because in some cases the last couple of decades haven’t been fantastic for Jaguar, but where we are going is.” Increasing its sales to 14,000 units annually for both brands will require a lift of a little more than 800 units over 2015’s tally of 13,177 (Jaguar: 1292 Land Rover: 11,885).
As well as the XF sedan, Jaguar will launch the hotly anticipated F-Pace SUV in the third quarter as well as some hot versions of the F-Type sportscar.
Mr Wiesner explained that before Jaguar offered its XE mid-sized sedan, the XF was trying to cater for too broad an audience, but the company was now able to target a more specific audience while the XE attracts a different buyer.
With part of its pre-XE audience now gravitating towards the smaller model, Mr Wiesner said the he was not expecting the XF to attract more sales in its second generation but to continue on a similar trajectory.
The first-generation XF put up a decent fight against the dominant German brands, occasionally trumping the BMW 5 Series stalwart at its own game. Sales of the Jaguar have averaged 73 per month since its introduction in 2008.
Building a selection of more desirable higher-quality vehicles is just part of the battle, according to Mr Wiesner, who added that the company is also addressing previous customer service and aftersales problems with more attractive finance and servicing deals.
“Our guaranteed future value financial services products we launched with XE and now flows on to XF ... it dials up our financial services partner’s confidence in what we are doing with Jaguar, making ourselves far more competitive in the financial services space,” he said.
A fixed-price servicing plan introduced with XE has also been extended to XF, offering another incentive to consider the brand, says Jaguar.
The other key facet of the company’s growth strategy ensures the dealer network expands at the same rate as its range of vehicles, with a current total of more than 40 dealerships Australia-wide. Mr Wiesner said that some single-brand dealerships still exist but all will be converted to Jaguar and Land Rover outlets.
“Gone are the days of having Jaguar or Land Rover dealers. Every appointment from here on will absolutely be Jaguar and Land Rover together because that’s what we are,” he said.
“We will have, by the end of this year, about 35 or 36 Jaguar and Land Rover dealers, so that means there will still be half a dozen Land Rover-only dealers who will then also be converted to Jaguar and Land Rover dealers.”
