Jon Wackett
Potent: Jaguar XE SV Project 8 was a star first-timer at Goodwood
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Jon Wackett
Jon Wackett

IT’S been a busy year for Jaguar already – indeed, in the weeks since I met Jon Wackett, JLR’s general manager of fleet and business sales, Jaguar has launched the all-new XF Sportbrake, the thumpingly potent Project 8 XE SV and now the E-Pace: Jaguar’s compact SUV competitor.

And that’s just one side of his business: JLR recently revealed that TATA had signed off a JLR spend of £15bn over five years to include 50 ‘product actions’ to maintain JLR’s sales surge.

Clearly, Jon was on his toes not to reveal too much at the time we spoke, but I was keener to establish what sort of future relationship leasing companies could expect from JLR.

“We have no projections on 2017 but clearly we’d like to grow our figures from 2016,” explained Jon.

And so far, so good.

According to JLR figures, Jaguar Land Rover UK’s total fleet sales in Q1 2017 grew by 32% compared to Q1 2016, as its key fleet-friendly models increased share faster than market rivals.

Meanwhile Jaguar total fleet sales grew by 37% in Q1 2017 compared to Q1 2016, as Land Rover’s increased by 29%.

In terms of true fleet sales, Jaguar’s grew by 16%, as Land Rover’s increased by 9% in the respective y-on-y quarters.

JLR performance in figures

  • Jaguar UK’s highest selling CH&L model last fiscal calendar year was the XE with almost 4,000 units – 29% of all XE UK sales
  • Land Rover UK’s highest selling model in fiscal calendar was the Range Rover Evoque at just shy of 7,500 units, 28% of all Evoque UK sales
  • Jaguar Land Rover UK sales split (by SMMT sales type): Private 49.3%; True Fleet 23.2%; Daily rental 5.1%; Own use vehicles 7.7%; Retailer 13.2%; Other 1.5%

“JLR will continue to grow its volume into the business fleet sector as we introduce new models into the market,” continued Jon.

“The key to this is strong RVs, and necessary precautionary actions to ensure that we do nothing to undermine the confidence when these are sold into the used car market at the end of their leases.

“In parallel with that we need to ensure SMRs are fully competitive. Total cost of ownership is key in the fleet and business market rather than just the sticker price.”

But with the increasing growth of personal contract hire, I wondered how the split would be in JLR leasing sales.

“We have started to keep a close eye on the development of PCH. There appears to be a sea change in the market in terms of acquisition as we see the emergence of personal contract hire. I would suggest it would be difficult at this time to draw any significant conclusions.

“We will engage proactively with those finance providers as necessary.

“Clearly there’s a shift going on, but how big that shift is it is too difficult to tell at the moment. It’s an effect of the market; the market is moving.”

Nevertheless, Jon is wary of how JLR supports the leasing sector going forward.

“We want to remain competitive but we are not prepared to force the market because this would only put downward pressure on our RVs. At the end of the day this is pure supply and demand.”

Finally, I ask Jon what’s the one thing he would like to achieve with leasecos in 2017?

“In 2017 I hope that leasecos will recognise Jaguar Land Rover as a fully established supplier. We have spent the last few years growing our offering and infrastructure and can now deliver the security of supply and ownership that we have been striving towards.”

And going forwards there’s still much to look forward to – those ’50 product actions’ for example – including iPace, the electrification of Jaguar’s SUV. Indeed, by 2020, 50% of JLR’s range will be available in electric hybrid forms says Jon.

Clearly, there’s plenty of opportunity for leasecos – and plenty of scope for leasecos to increase their JLR penetration.

IHS Markit on the new Jaguar E-Pace

Jon Wackett
New E-Pace

By IHS Markit principal automotive analyst Ian Fletcher

Having had no contender in the popular SUV sector just two years ago, Jaguar now has two, the F-Pace and now the new E-Pace.

This will be an entrant in to the premium compact crossover category, competing with the likes of BMW’s X1, Audi’s Q3, Mercedes’ GLA and the forthcoming Volvo XC40.

While it will be smaller and less expensive than the exceptionally popular Jaguar F-Pace, early indications suggest that it will maintain the same values and styling traits expected from this brand.

Jon Wackett
F-Pace

Additionally, it will add further sales volume to the brand. IHS Markit currently anticipates that this model will see its global sales peak at around 61,500 units during 2019, at which point we see Jaguar’s overall volumes standing at 270,800 units.

This is a far cry from the lows of under 50,000 units that it sold globally in 2011 and the 147,300 units that it sold last year.

We also see JLR’s global sales reaching 765,700 units during 2019, up from around 589,200 units in 2016.

Jaguar XE – Jaguar had a huge presence at Wimbledon Tennis

 

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