Fleet will be “front and centre” as JLR moves to an electric line-up

Fleet and business sales will be a key driver of registrations for JLR as it evolves into a group of electric vehicle (EV) brands by the end of the decade.

It’s no secret that the British car maker is part-way through a series of strategic changes that will see Jaguar selling only electric models by 2025. More recently, it was announced that Land Rover is being split up into the Defender, Discovery and Range Rover brands – each offering EVs by 2030.

Fleet and business customers already account for the majority of JLR’s electric and plug-in hybrid vehicle sales and Andrew Jago, general manager for fleet and business at JLR, expects the fleet to be “front and centre” as the company’s new models come on stream.

He says: “In the EV market, three of every four premium EV sales is true fleet. Private has actually gone down significantly, it's about 17% of premium EV sales now. So, you can't rely on the on the private market for EV.

“What we're seeing is very robust demand in the salary sacrifice and user-chooser spaces. It really does underline the importance of this area of the market.”

Last year saw sales declines for both the Jaguar and Land Rover brands, driven predominantly by a shortage of semiconductors. Jaguar sales were down by 35%, according to Society of Motor Manufacturers and Traders (SMMT) figures, and Land Rover was 19% behind its 2021 sales.

While registrations fell, the brand launched new versions of its flagship Range Rover and Range Rover Sport models. Both achieved record levels of interest.

At the start of the year, JLR’s order banks accounted for 50% of its full year sales plan. By the half-year point, the brand improved its supply situation, enabling it to speed up deliveries and hand over more vehicles.

Sales for the first half of 2023 totalled 34,643, putting the brand in good stead to exceed its 2022 full year sales figure of 55,345.

Jago says: “Fleet and business demand is really robust. We're in very healthy state in terms of order banks now but, most importantly, we're starting to deliver them quicker.”

Direct sales deliver satisfaction boost

A strategy to move its key accounts to a direct sales model has achieved an uplift in customer satisfaction, according to Jago.

The change, introduced last year, was introduced to strengthen the carmaker’s relationships with end-user drivers and improve customer service for fleets.

It required JLR’s retailers to contact fleet customers and encourage them to have a face-to-face handover, the same as a private customer would.

Jago said customer satisfaction ratings have risen by 40% for customers who take delivery of their car at a retailer when compared to those who had a remote handover.

2024 model updates

A suite of changes have been applied across JLR’s core models for 2024, resulting in some models moving to lower benefit-in-kind (BiK) tax bands. Jago said customer demand, as a result, has been “exceptionally strong”.

All variants of the plug-in hybrid Range Rover and Range Rover Sport attract 5% BiK, while its Jaguar E-Pace and F-Pace, along with the Range Rover Evoque and Velar, and Discovery Sport sit in the 8% band. The inclusion of 50kW rapid charging capability, further boosts appeal of the models.

All-new Jaguar

Jaguar’s re-invention will start in 2025. JLR has remained tight-lipped about what the brand’s future looks like but has confirmed that it will launch an electric four-door GT car with a 430-mile range and a price tag of around £100,000.

The car will be the first of three new electric Jaguars to hit the road.

Production of the new model will take place at JLR's plant in Solihull, near Birmingham, as a part of a wider shake up of production and factories.

Speaking of the brand’s re-launch, Jago said: “It's a really unique situation we're in at the moment where we're able to literally just reset the brand completely.

“When you see the products, they are very polarising. They are very much a copy of nothing, when you see them, you couldn't mistake them for anything else.

“We do have a deep understanding of fleet and business requirements at board level and we are already transacting at price points close to where new Jaguar will be at the top end. So I'm entirely comfortable with the market positioning.”

By 2030, all JLR’s nameplates will be electric. The first model confirmed for launch will be the electric Range Rover, in 2024. It’s expected an electric Velar will follow in 2025.

In line with its electrification plans, JLR will build a £4 billion battery factory in the UK.

The new gigafactory in Somerset, one of the biggest in Europe, will have the capacity to produce 40GWh of cells annually. It will make batteries for JLR and expects to supply other manufacturers, with production starting in 2026.