Jaguar is reportedly working on an entry-level electric vehicle to compete against Tesla Model 3 and Polestar 2 in the coming years.
Jaguar Land Rover’s financial troubles started long before the global health crisis made a significant impact. In the second half of 2018, the British manufacturer owned by Tata Motors reported a huge loss of $113 million. Resultantly, JLR began cost-cutting measures like slashing jobs and scrapping projects such as Range Rover SV Coupe.
The company picked ousted Renault boss Thierry Bollore as the chief executive and he will be at the duty from September 10 with the sole aim of bringing the brand back to profitability. Bollore took over at Renault in January 2019 before being pushed out in October. At JLR, he will take over from Ralf Speth, whose tenure lasted for more than a decade.
According to a report emerged on the internet, Bollore will be looking to turn Jaguar into an all-electric brand to compete against Tesla. It is said to be preparing a direct competitor for the Model 3 and it will have a character like the Polestar 2, a blend between crossover and sedan. The zero-emission model will sit at the entry-level point of the brand’s EV range.
Thus, it will be slotted below the I-Pace and the electrified XJ is also in the development. Besides Tesla Model 3, Jaguar will also look to grab the market share of Polestar 2 with its EV and it will replace the XE. The popularity of the XE luxury sedan has reduced in recent times and its sales volumes were down by 28 per cent in the last fiscal.
Only time will tell whether the entry-level luxury electric car will use the XE or not but the chances of it utilising the Modular Longitudinal Architecture (MLA) are high. With Jaguar and BMW co-developing electric powertrains, there could be more compact electric vehicles coming in the future carrying Jaguar badge.
With the downturn in sales fortunes in China, Jaguar Land Rover took a big hit and it is looking at ways to get back into the normal phase and eventually become profitable. The swift transition towards electric vehicles could help in its cause.