Upgraded Jaguar XE to find more buyers

When the 2020 Jaguar XE arrives in Australia from August, priced between $65,670 and $71,940, the facelifted mid-size luxury sedan has no chance of matching the big sales numbers of its German rivals like the upgraded Mercedes-Benz C-Class and BMW 3 Series.

Jaguar Australia freely admits this and has completely transformed its product strategy as a result, halving the model grades it will here (to just two) and dumping all engine choices except one, a 221kW/400Nm 2.0-litre turbo-petrol four-cylinder.

But rather than capitulating to its rivals, the British brand intends to carve out its own niche and leave the Germans to fight it out for market leadership.

"We realise that we're a small player in this segment," said Tim Krieger, Jaguar Australia's general manager of communications and PR, told carsales.com.au at the 2020 XE's global media launch in Nice, France.

"We're not Mercedes. Mercedes has 600 [C-Class sales] a month. BMW does significant volumes. We are happy to just keep a nice level of volume going, understanding that that segment is under stress."

While it is true that the German luxury car trio of C-Class, 3 Series and Audi A4 command strong monthly sales, all but the BMW have seen their sales drop significantly over the past 12 months due to several factors, including a downturn in consumer sentiment due to falling property prices.

"I think that whole luxury market has been effected, drawing a correlation between new car sales and housing. Sydney and Melbourne [property prices] are off significantly. So the [luxury car] market is the same. It's come off quite significantly."

Krieger argues that people who had considerable equity in real estate, and who would have been happy spending more money on a prestige car, are now a little more gun shy.

"People are probably buying a Mazda CX-5, rather than buying a luxury car. So I think we've seen that happen.

"We've got an election now … that won't settle down until May and potentially a change of government which always makes people nervous. Labor's got their negative gearing policy so I think things will be tight.

"The banks are also tightening their credit with the Royal Commission findings. So there's a number of factors out there that make things [challenging]."

Despite the doom and gloom facing the once-unstoppable luxury car segment in Australia and the fact that Jaguar has resigned itself to playing second fiddle to its European rivals, the company is confident the facelifted Jaguar XE will be more popular.

Last year Jaguar found just 524 XE buyers in Australia (down more than a third on 2017), accounting for just three per cent of the premium mid-size car segment, which was down almost 22 per cent but still dominated by the C-Class (29%), CLA and 3 Series (both almost 18%).

"The advantage is that we have these new models [coming] so if you've got new product, that naturally creates demand. So it gives you the opportunity to create more interest,” said Krieger.

The new Jaguar XE's mechanicals are virtually unchanged but it features a new look via reworked front and rear aprons, new LED headlights and tail-lights and a significant interior upgrade.

The car borrows a lot of tech goodies from the Jaguar I-PACE electric SUV, such as its show-stopping twin-screen 10.2-inch infotainment system.

It will also be the first car in its class to offer a digital rear-vision camera, relaying footage from a camera on the roof.

Perhaps the Jaguar XE's biggest drawcard will be the simplified line-up, which consists of just two models grades now, the R-Dynamic SE ($65,670) and R-Dynamic HSE ($71,940).

"Certainly there is a recognition that we need to simplify these for customers," admitted Krieger.

Jaguar's sister brand Land Rover and in particular some Range Rover models such as the Velar have up to 40 model grades to choose from, which is confusing for customers – and the salespeople spruiking them.

Krieger observed that in some cases the model complexity may have contributed to lost sales.

"There has been some missed opportunities there. So yeah, this is the start and we're working to see how we move that forward.

"I think it's something we can get some learnings from for future models and across both brands and I guess the volume and aspirations of that car [XE] allows us to do that."

Stay tuned for our first drive of the 2020 Jaguar XE at 5:00pm today.