Jaguar Land Rover improves its image thanks to the shortage of chips
The company has been hit harder by chip shortages than competitors, in part because of the complexity of its designs, Bolloré told investors in an earnings call Thursday.
“We are definitely losing market share,” he said. “But the impact on the pitch is higher desirability because scarcity creates that desirability,” Bolloré said.
JLR’s backlog rose to 168,000 at the end of March from 155,000 at the end of December, the company said in its quarterly earnings report.
JLR said it wants to focus less on volume and more on driving up prices, as it stops mirroring the strategies of its German premium rivals.
The Land Rover brand has added more refinement, high-tech features and paid greater attention to design detail to its latest-generation Range Rover and Range Rover Sport to deliver what it calls “modern luxury”.
The shortage of chips contributes to this. “The brand is being propelled towards modern luxury at a higher level than expected and faster,” said Bolloré.
The starting price of the new Range Rover Sport which goes into production in June has risen 22% over its predecessor to 79,125 pounds ($97,553), from 64,760 pounds, in its UK home market.
The price is significantly higher than rivals such as the BMW X6, which starts from £65,740 in the UK, and the Audi Q8, which costs from £68,955.
At 99,375 pounds, the next-generation Range Rover starts at a price 13% higher than the previous generation. Prices go up to 157,820 pounds for the V-8 SV model.
JLR said 46,000 of its 168,000 orders were for the Range Rover model.