After a time of success, that of dissatisfaction? We remember the good times when India’s Tata bought the English Jaguar-Land Rover and developed it at full speed. We also remember the Jaguar I Pace, the first high-end electric car to go on sale just before Mercedes and Audi fell into the fray. The victory at the post was complimented by the car trophy of the year 2019. We always remember the Land Rover Evoque, also a pioneer in the field of small SUVs, and which was a hit in the beautiful suburbs.
Tata loses $620 million in the quarter
It was a short time ago, and it was still a thousand years ago. Because today, the time is no longer for pride. Tata has released its results for the second quarter of 2020 and they are not good: the group is facing a loss for the sixth quarter in a row and, for this spring, it is about 620 million dollars. The loss that is not related to its internal operations, up to 8.3%, but for its English subsidiary, less than 11.3% in the same period.
The decline is frequent. Since the start of 2020, Jaguar-Land Rover has recorded the strongest jolt in the European market by -34.7%. Worse, in France, the two brands together fell by 44% in six months. It’s enough to make the boss, Thierry Bolloré, Renault’s former interim boss, have a bad summer. The man, who was called to save the bed of the Indo-British manufacturer a short time ago, decided a year ago to strike hard by ordering that Jaguar will not be the first brand, but will now hunt in the land of luxury. directly, in the land of Porsche, Maserati and other Bentleys. All this, at a price that should start at 115,000 euros.
Why not? Except that while we wait for the English parent company to invest in its subsidiary that is changing the floor, the current Jaguars are getting old. The XE blows its seven candles with general indifference, the I Pace is the only electric of the bunch and its potential customers only have eyes for the Tesla. The rise towards luxury which is therefore not accompanied by enough goods at the moment, but with a rise in prices for the first time. The entry ticket for a British feline has gone from 39,000 to 55,000 euros. The result: the fall in sales continues.
But what happens to Land Rover in this case? High-end or luxury, the master-farmer brand no longer knows which tire to play. Between the female Evoque, with an average price of 55,000 euros, the Range Rover or Velar that look luxurious and the Defender that leaves the bad by showing a price that starts around 70,000 euros, the well-known English house has several rabbits. in time.
So, in a way, Jaguar-Land Rover is trying to exist, electrifying itself, a little, by mixing a lot and trying to win back a few customers with the FlexFuel program. And as prices continue to rise, despite fewer sales, traders continue to make a comfortable living. For how long? Electrification, both publicized and desirable, requires, at JLR as elsewhere, significant investment. It is still important that the parent company gives its consent. Hello dad? it’s your nephew from England…