Jaguar Land Rover increases focus on fleet sales

Jaguar Land Rover is embarking on a massive strategy to schmooze fleets and businesses globally to buy British.

The Tata-owned company has revealed that for too long it has courted retail buyers rather than paid attention to the all-important fleet sector, and it believes its new Jaguar XE small saloon and Land Rover Discovery Sport are just the cars to get fleets and businesses queuing up at its dealers.

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With the car industry’s total industry volume predicted to reach 100 million cars globally by 2020, Jaguar Land Rover believes that half of that could be cars sold in the fleet market – and it’s a share the firm wants to have. JLR wants to increase its global sales from fleets and business from 17 per cent currently to around 25 per cent by 2020.

JLR has launched big plans to invest in its global fleet and business presence around the world growing its dealer network and getting specialist corporate sales teams on the road to entice clients to not buy German but British instead.

The company’s 2,500-strong dealer network worldwide will be bumped up to around 3,300 by 2020 and business users will be tempted to consider Jaguar and Land Rover products thanks to a new website and new social media sites such as LinkedIn.

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The two cars that JLR has up its sleeve are the new Jag XE and Discovery Sport SUV. Company execs believe the baby Jag saloon will be a big shot in the arm of German rivals BMW, Audi and Mercedes as the 2.0-litre 160bhp diesel XE will offer 75mpg and CO2 emissions 99g/km of CO2 – figures which push the small saloon to the top of the pile in the all-important fleet market.

And another reason JLR thinks fleets and businesses will be swayed to a car wearing the pouncing cat is that it has best-in-class residual values. Industry valuation expert CAP says the XE will hold onto 45 per cent of its value over three years and 30,000 miles – ahead of arch rivals BMW and Audi.

Meanwhile JLR also believes its new seven-seat Land Rover Discovery Sport, which arrives in January 2015, is 30 per cent more fuel efficient than the Freelander it replaces. It will further gain brownie points among fleets and businesses as it’ll offer CO2 emissions of 119g/km in the 2WD 2.0-litre eD4 version and high residual values. That model arrives later in 2015.

Chris Newitt, Jaguar Land Rover UK sales director, told Auto Express: “There is absolutely no doubt that the Jaguar XE and Land Rover Discovery Sport provide us an opportunity to take advantage of the UK fleet market – the XE in particular as it opens up a new sector for us.

"These two cars really do signal a strengthening of our brands. Thanks to their stand-out design, affordability and class-leading fuel economy and CO2 emissions both cars really will appeal to the widest group of customers that we have ever been able to speak to before.

“But these two products have got to be matched to a great fleet and business strategy and we have worked hard over the last few years to invest in this sector, and make sure that our teams and our investment stand up with the best in the shape of Audi, BMW and Mercedes.

“We will make sure that the short-term business for XE and Discovery Sport never goes above 20 per cent of the next year’s volume. We will not chase volume with our fleet and business sales. Jaguar Land Rover is about special products, cars that offer unique British essence giving customers something truly different.”

“The contract hire and leasing market is now very wary indeed of premium manufacturers overpushing volume and damaging RVs as a result. We are committed to exclusivity – and will bring stability as a result.”

Would you choose a Jaguar or Land Rover over the usual company car suspects from Audi, BMW or Mercedes? Let us know in the comments below...