Have Jaguar and Land Rover (JLR) become single-product driven brands? At least the model-wise break-up of the first quarter sales of JLR suggests that this is the case.
While UK subsidiary Jaguar Land Rover boosts up Tata Motors bottomline and topline, it faces a unique challenge — only one model each of both Jaguar and Land Rover show growth while the rest have seen a drop in sales.
For Land Rover, it is the smaller and cheaper Range Rover Evoque which has become the sole volume driver. Evoque clocked 27,000 units in the first quarter (April-June), accounting for a third of Land Rover sales.
The sales volume of other Land Rover model’s such as Freelander, Ranger Rover Sport and Discovery dropped 28%, 14% and 12% respectively.
Similarly, among Jaguar models, XF sales grew 15% while XK and XJ sales dropped 31% and 4% respectively.
The parent, Tata Motors, is aware of older JLR models losing steam and pumps in R3,000-4,000 crore each year in developing new products. Inspired by the success of Evoque, the company is working on lighter, more fuel-efficient, lower emission vehicles. Cheaper model like Range Rover Evoque may fetch lower margin but large volumes more than compensate.