MarketLine Blog

Jaguar Land Rover: Five years of successive growth under Tata’s leadership

Jaguar Land Rover has now reached five consecutive years of growth in 2015, which has been achieved under Tata Motors ownership and investment. This success has emboldened the company to invest in itself and Jaguar land Rover now produces its own engines, has plants in Brazil and China and has brought the Jaguar range right up to date, making the company one of the most important and successful prestige car companies and one of the most recognizable British manufacturers.

The company has managed to do this on the back of three key successes; producing a highly desirable product range which tapped into the key trends of the market, using sponsorship to drive straight to its target customers and using its British image and heritage to make its products sell very well in some of the biggest global markets such as China and the USA.

The prestige vehicle segment has seen all types of new entrants in recent years that have altered the nature of the market, from the Tesla electric car to the arrival of mass producing manufacturers making prestige vehicles, but nothing has quite disrupted and invigorated the market in the same way that the luxury SUV has. It was JLR which was one of the very first to identify this emerging trend and to quickly convert its flagship model, the Range Rover, from an agricultural vehicle into a luxury off roader, slowly making each successive model more packed with features and comforts. The success of the Range Rover has been the spring board for the rest of the company.

JLR been building on its image and making sure that its customers find the brand active in the right places. This has become one of the company’s key occupations as unlike other companies that aim just for mass audiences, JLR has chosen ones that suit its own target audience. Being a luxury car maker this means the focus is on activities that are enjoyed by middle class or wealthier individuals that would be attracted to the company’s products such as rugby, equestrian, cycling, armed forces events and typically with quintessentially British values.

By making the company’s products first and foremost British, JLR has been able to open up foreign markets much easier. This is certainly not a new technique, and examples of brands that have been able to transition beyond their own identity are plentiful but JLR has deployed well developed PR schemes in order to make sure that it is synonymous with the British state.

The challenge for the company now is how it deals with the problems that are becoming apparent in the automotive industry. Such as; will Jaguar Land Rover produce an electric vehicle as many other firms are doing? Will making cheaper SUV’s dilute its brand strength? Can the Jaguar brand stay relevant and compete with the big German manufacturers for the executive segment? By phasing out Defender production just how will this affect its reputation for go anywhere workhorses and off road prowess?

To find out more read our case studies on Jaguar Land Rover:

  • Jaguar Land Rover: Adapting the original SUV & turning middle class Britishness into a business asset
  • Jaguar Land Rover: Providing remarkable growth throughout the economic downturn

Advantage subscribers can access the reports here and here, non-subscribers go to our store.

 

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