While Jaguar is in a hole these days – mostly of its own making – the company is looking at an electrified future to turn the tides. The company posted a series of quarterly losses with the latest revealed on February 7th with £273 million in the latest three-month period. To add insult to injury, there was an additional whopping asset write-down, of £3.1 billion.
In turn, the immediate aftermath produced a rippling effect across the board. The shares in its parent company, Tata Motors, which is the carmaking arm of the Indian conglomerate, collapsed by 18 percent and have now fallen by 60 percent in the past year. To make matters even more compelling, Jaguar Land Rover accounts for about 80 percent of the total sales and all of its profits for the Indian company, making us believe a big change is coming behind the scenes.
According to sources, the parent company is committed to Jaguar Land Rover and it is determined to turn it’s faith around. And the imminent replacement of both the Jaguar XE and XF models looming behind the horizon, paired with the success rates of the all-electric I-Pace, is making the British carmaker turn to EVs for their future success.
It was revealed in an article published by AutoCar, that the British carmaker is eyeing a clean slate design for both. According to the information revealed, Jaguar is eyeing to migrate all of their mainstream models into a single flexible platform in the preparation for their entire range becoming electric in the next few years. In turn, this follows a similar path that BMW AG took with their new multi-modal platform, giving the Bavarian carmaker the option of using it for both their ICE models, but also, to hybridize and electrify some of its range, while keeping complete flexibility.
With the European Commission announcing recently that the CO2 emissions of new cars registered in the EU will have to be 15 percent lower in 2025 and 37.5 percent lower in 2030, Jaguar will be hard pressed to rethink their strategy. And this comes in the face of a potential problem where not even the 2023 plug-in hybrid XE/XF and the XJ could not be enough to help meet the 2025 targets. While a logical answer to this problem would be to go electric, the British carmaker is well aware of the potential issues stemming from the dependency of EV uptake on government incentives, charging infrastructure and legislation changes.
However, the success of the Jaguar I-Pace might move the carmaker in the direction of hybridization and battery-powered vehicles in the near future. If Jaguar decides to go completely electric, the appealing styling of their newer models, combined with the premium brand awareness and likeability, might actually turn the tides around for one of the world’s most coveted car companies in the long run. With the world moving to a cleaner future, some low-yield carmakers like Jaguar might benefit more from skipping the hybridization phase altogether. But, having said that, moving to battery-powered vehicles completely is a big decision to make. Especially for a company that’s been struggling to keep things going at a reasonable rate. However, an electrified Jaguar F-Type with a 0-60 mph in 3.0 seconds, gorgeous looks and impressive handling, sure sounds like a good idea.