Tata Motors-owned Jaguar Land Rover has embarked on a new strategy to tap the potential in the fleet and business car segment.
10 Dec 2014 | 2623 Views | By Autocar Professional Bureau
Tata Motors-owned Jaguar Land Rover has embarked on a new strategy to tap the potential in the fleet and business car segment. The company expects a contribution of 20-25 percent from fleet sales by 2020.
With two of its most important new models arriving in 2015, the new strategy ...
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Tata Motors-owned Jaguar Land Rover has embarked on a new strategy to tap the potential in the fleet and business car segment. The company expects a contribution of 20-25 percent from fleet sales by 2020.
With two of its most important new models arriving in 2015, the new strategy will maximise sales in established markets, exploit opportunities in emerging markets and play a critical role in helping Jaguar Land Rover achieve a significant increase in fleet sales by 2020.
At the heart of this enhanced approach are the Jaguar XE and Land Rover Discovery Sport – the most business-friendly models ever to be launched by Jaguar and Land Rover. Entering new segments in 2015, these two models will put Jaguar Land Rover onto more fleet and business choice lists than ever.
Together with this investment in product is an investment in Jaguar Land Rover's global fleet and business presence. The global Jaguar Land Rover retailer network is intended to grow from 2,600 across 180 countries at present to over 3,300 by 2020, while specialist fleet and business centres will account for 20 to 25 per cent of total volume. Mirroring this will be a joint portfolio fleet and business sales approach, with corporate sales teams visiting clients as one collective brand, offering both Jaguar and Land Rover products.
This investment in retailers, corporate sales staff and digital infrastructure will see the proportion of global sales from fleet and business increase from 17 per cent to around 25 per cent by 2020, while the XE will be Jaguar Land Rover's biggest global fleet and business seller.
"This is the biggest, most important global fleet and business strategy we have ever implemented. It is crucial in order for JLR to grow, as it will see us build on the incredible renaissance of the last six years, most of which has been focused on retail sales," says Ken Forbes, director, global fleet and business sales, Jaguar Land Rover.
"We certainly won't be applying a one-size-fits-all strategy to our markets, though. We will plant the best parts of our fleet sales business approach across markets. We have the expertise and the product to get it right."
In the UK, the new Jaguar XE is expected to significantly increase Jaguar's volume in a full twelve-month sales period. Some 45 per cent of XE sales will come from the fleet and business sector, which has resulted in significant investment in Jaguar Land Rover's UK corporate sales structure. Now working across the Jaguar and Land Rover brands are four senior-level managers at head office, while the UK field-based sales team has grown from 16 to 22, implementing a new direct sales approach that will meet and exceed the needs of large fleets.
The retailer network has also benefitted from significant investment with a new structure put in place that will serve the needs of SMEs and user choosers. Some 25 local fleet and business teams, selected based on their desire and opportunity to serve local businesses, have been appointed who will sell 80-100 cars locally. This dedicated retailer-based team will mean that small businesses and user choosers – who are often neglected by manufacturers – find they are treated in just the same way as retail customers.
The best-selling fleet and business model is set to be the XE 2.0d StopStart EU6 R-Sport Auto, anticipated to account for the majority of XE fleet and business sales. Not only will it offer business drivers the lowest total cost of ownership in the premium c-segment, it will retain an RV of 45 per cent after 3yrs/30,000 miles according to CAP. Jaguar Land Rover is committed to maintaining strong residual values for the long-term with very careful management of its fleet and business sales mix. Some 80 per cent of XE fleet sales will go to long-term business deals such as those with blue-chip companies and user-choosers.
"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," says Chris Newitt, sales director, Jaguar Land Rover UK.
Both the XE and Land Rover Discovery Sport have been designed and developed with Jaguar Land Rover's global fleet and business team involved from the start. When it goes on sale in January, the Discovery Sport will be the most efficient production Land Rover ever, with competitive residual values and outstanding versatility for fleets thanks to a seven-seater option.
Later in 2015, it will be available in 2WD eD4 form with CO2 emissions of 119g/km.
"These new products are supported by an enhanced new fleet and business sales structure that will see the needs of large fleets and user choosers not just met but exceeded," says Jeremy Hicks, managing director, Jaguar Land Rover UK.