Jaguar Promises to Deliver Its First Electric SUV in Two Years
November 15 2016 - 4:20PM
Dow Jones News
Luxury car maker Jaguar Land Rover plans to deliver an electric
sport-utility vehicle in 2018, taking a shot at Tesla Motors Inc.'s
Model X and other automotive rivals.
Jaguar Land Rover on Monday unveiled its Jaguar I-Pace SUV
concept ahead of the Los Angeles Auto Show that begins this week.
Its electric SUV will be first of several such vehicles planned by
the British brand owned by India's Tata Motors Ltd.
Other luxury car makers are close behind. Audi AG plans to
market an electric SUV in 2018, it has said. Daimler AG's
Mercedes-Benz is gearing up to show an electric, midsize SUV in
2019, and BMW AG aims to offer a battery-powered X3 SUV in 2020.
They are moving in part in response to tougher emissions standards
in the U.S. and Europe.
Jaguar Land Rover is on the trail of Tesla's Model X, which went
on sale last year and is part of Chief Executive Elon Musk's plan
to boost the Palo Alto, Calif., company's electric-vehicle
production to 500,000 vehicles in 2018, from about 50,000 in
2015.
The number of all-electric models available in the U.S. is
expected to triple to 19 by 2020, according to credit-rating firm
Moody's Investors Service. Sales of small electric sedans, such as
Nissan Motor Co.'s Leaf and BMW's i3, have been disappointing so
far.
Overall sales of high-end SUVs have been bright spot in the U.S.
auto industry, garnering a 52% share of the overall U.S. luxury car
market through October this year, up from 40% of sales in 2013,
according to data provider LMC Automotive. Auto makers are eager to
sell SUVs because they command higher prices than smaller cars, and
they're increasingly popular with luxury car buyers. Jaguar didn't
disclose a price for the I-Pace.
"We don't see the trend toward SUVs going away anytime soon,"
said Jeff Schuster, an analyst at LMC Automotive, in an
interview.
Visitors to the Los Angeles Auto Show, which opens to the public
on Friday, will find several new electric offerings. General Motors
Co. is soon to bring its all-electric Chevrolet Bolt to buyers in
coming weeks, and Fiat Chrysler Automobiles NV is rolling out a
plug-in hybrid version of its Pacifica minivan.
"Historically, the notion has been that you need to show people
that you're driving an electric car," said Joe Eberhardt, Jaguar
Land Rover's U.S. chief. "That doesn't mean it has to be small and
it has to be quirky looking. What I think we're trying to prove
here is that you can have a great-looking…SUV that's
all-electric."
The I-Pace reflects the emphasis on size and style in an
all-electric model. It will have an 90-kilowatt-hour battery
designed to give the vehicle a range of 220 miles on a charge, the
company said.
Jaguar Land Rover's bet on an electric SUV marks a remarkable
turn following Tata's $2.5 billion acquisition in 2008 of the
brands from Ford Motor Co., which was shedding assets to avoid
bankruptcy. That year, the British division delivered almost 45,000
vehicles in the U.S., down from a record of 102,000 in 2002,
according to market researcher Autodata Corp.Jaguar Land Rover
under Tata Motors has focused on its core products, including the
Land Rover Discovery Spot SUV and the Jaguar XF sedan. Its U.S.
sales are up 23% this year through October, to 83,391 vehicles. The
market as a whole, meanwhile, has remained flat.
Jaguar's sales growth likely will slow in 2017, Mr. Eberhardt
acknowledged. But he is optimistic demand will continue to expand
in the U.S. helped by the XE sedan and F-Pace SUV, which were
introduced midyear, and updates next year of Range Rover and Range
Rover Sport. "We are in the middle of a dramatic turnaround," he
said.
Write to Tim Higgins at Tim.Higgins@WSJ.com
(END) Dow Jones Newswires
November 15, 2016 16:05 ET (21:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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