Jaguar is currently undergoing the biggest change in its 90-year history. The British carmaker has taken the radical step to end production of all four of its model lines and move upmarket, with plans to introduce a new vehicle—a luxurious electric sedan—in 2026. It'll be more expensive and more capable than any Jaguar before it. And it'll be more scarce, too.
"We have very realistic volume expectations," says Brandon Baldassari, head of Jaguar USA. "This is not a huge segment, so it's not like we're going to be selling a million of these things. These will be rare—when you see one, it'll be a special occasion."
Revealed as a concept in 2024 and dubbed the Type 00, Jaguar's new electric car brings striking proportions and a hyper-monolithic design scheme. While the concept features just two doors, the production version will be a proper sedan, with four doors and four seats. Baldassari promises the road-going model will share much of the concept's design.
"Our volumes are going down, so naturally, you don't need as many retailers," Baldassari told Motor1 at The Quail. "Some of our retailers are choosing to voluntarily return their franchises. Because maybe their market just isn't a big EV market, or maybe they don't believe in it."
'These will be rare—when you see one, it'll be a special occasion.'
Going forward, Jaguar plans to rely on profit margin per vehicle, rather than selling as many cars as possible.
"Trying to chase volume like we were with F-Pace and XE, and competing on payments is not luxury. It's not where we need to be," says Baldassari. "We're better when we can charge the price that we want to charge, don't discount, produce in a small enough volume that we make an honest profit, but we don't flood the market. A little bit of scarcity, and we can have a very nice, healthy business as a car company."
For loyal Jaguar customers, there will be a significant sticker shock. Baldassari expects the company's average transaction price to double, from $65,000 to around $130,000. But he's not worried about finding buyers, thanks to Jaguar's association with Range Rover.
"We're selling this through the [Jaguar-Land Rover] dealerships, who sell $200,000 Range Rovers all day long," Baldassari told Motor1. "They know this client, and they know how to treat this client. They understand this client. So we think we have a great retail partner network."
Still, it remains to be seen whether such a buyer base can support Jaguar's new direction. The luxury EV space is the most cut-throat in the industry, relying heavily on design and interior tech to sell cars, as competing electric powertrains tend to feel largely the same from behind the wheel.
Either way, Baldassari seems confident this is the right path for the storied brand. Let's hope he's right.
