Prices for Jaguar’s new lineup of battery electric vehicles (BEVs) are poised to rise after the carmaker went through a major rebrand as part of a company-wide effort to transition from internal combustion engine (ICE) vehicles to luxury electric cars. Jaguar Land Rover CEO Adrian Mardell recently revealed that a single unit of the automaker’s new EVs will cost £150,000 ($190,974) rather than the £100,000 ($127,316) Jaguar Land Rover (JLR) announced, making the cars a whopping 50% more expensive than initially expected.
Jaguar’s rebrand came at a rough time for the auto industry and the nascent electric vehicle market in particular. High interest rates and rising living costs meant people were far less likely to buy costly cars, and EV sales suffered. Most established carmakers had already made ambitious plans for electrification, seen a major decline in market demand, made significant losses, and opted for less ambitious plans by the time Jaguar went forward with its rebrand.
The carmaker is now looking to attract customers from luxury automakers like Porsche by developing luxury electric cars. According to Mardell, Jaguar will spend a whopping £1.5bn ($1.9bn) developing its new line of battery electric vehicles through the next 5 years with the first new-gen production Jaguar, a four-door GT, being unveiled late next year.
Speaking in a Sunday Times interview, Mardell said the electric Jaguar will be the most powerful vehicle the brand has ever made and will cost more than £100k ($127, 316). If Jaguar prices the electric four-door GT at £150,000 (roughly three times the price of the F-Pace SUV), Jaguar will have to sell around 30,000 units annually just to recoup its investment.
As part of its rebrand, Jaguar announced that it would halt the production of fossil fuel-powered cars by the end of 2024 to focus on producing electric cars. However, now that more and more potential buyers are shying away from electric cars due to high costs, Jaguar’s decision to focus on manufacturing electric cars rather than selling both fossil fuel and alternative energy cars is a curious one.
While most established automakers are looking to attract the average buyers who make up the bulk of the vehicle market, Jaguar intends to market its new electric offerings to affluent buyers who typically purchase premium cars from brands like Bentley or Porsche. With the global electric vehicle industry still suffering from depressed demand and sales, only time will tell how Jaguar’s gamble pays off.
The innovations in battery technology being championed by entities like QuantumScape Corp. (NYSE: QS) could provide the cost-reduction masterstroke that the EV industry needs to take the next leap among motorists and popularize these new energy vehicles.
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