Jaguar is betting big on a radical transformation. The British automaker is abandoning internal combustion engines entirely, aiming to compete directly with Bentley by becoming a high-end, electric-only brand. This shift has left many Jaguar dealers deeply uncertain about the future, with one representative bluntly stating, “There is currently no business case for the brand.”
The Gamble: Leasing Instead of Selling
The core of Jaguar’s strategy is ambitious: to avoid the pitfalls of mass-market luxury, the company plans to lease its first all-electric grand tourer rather than sell it outright. This move isn’t about customer convenience—it’s about control. By retaining ownership, Jaguar hopes to avoid a flooded used market that would undermine its effort to position itself as a true competitor to Bentley, where high residual values are crucial.
This is a direct response to the mistakes made by rivals like Mercedes-Benz, which diluted its premium image with high-volume, entry-level models. Jaguar is deliberately limiting production to around 10,000 units annually—a sharp drop from its peak of 181,500 sales in 2018. For context, Bentley sold roughly 13,500 cars in 2023, making Jaguar’s target aggressive yet achievable if the brand can capture the right buyers.
Dealer Skepticism and Market Uncertainty
The new direction isn’t without its doubters. Andreas Everschneider, CEO of the German Jaguar and Land Rover Dealers Association, acknowledges the opportunity but admits, “We don’t know what to expect, how big the market is, or which customers will buy the vehicle.” The question of who will pay at least $130,000 for a Jaguar EV remains unanswered.
Salvatore Colangelo, managing director of Glinicke British Cars, highlights the appeal of the new designs and technology but also echoes the uncertainty: “Brand, design, and technology – the new Jaguar models are something special. This is a new path. The question remains: Who are our future Jaguar customers?”
The High-Risk, High-Reward Play
Jaguar acknowledges that it’s alienating most of its existing customer base. The company estimates that 85% of current buyers won’t return, betting instead on attracting wealthy individuals drawn to its dramatic styling and exclusive EV platform.
The viability of this approach hinges on profitability, a significant challenge for EV manufacturers. While Jaguar is committing to a low-volume, high-margin model, the long-term financial sustainability remains to be seen. The company is banking on the fact that ultra-luxury buyers still crave exclusivity, even if it means sacrificing wider market appeal.
Jaguar’s future is unproven, but the shift is clear. The brand will either become a niche luxury icon or disappear entirely.
