Richard Gouverneur
Jaguar Land Rover (JLR) South Africa and Sub-Sahara Africa should see an improvement in sales this year as it launches a number of pivotal new models, says MD Richard Gouverneur.
The company saw 2014 sales in South Africa decline to 7 222 units, compared with 2013’s 8 585 units.
Gouverneur says the decline was brought on by an ageing model line-up, especially in terms of the Freelander; price increases necessitated by the rand-pound exchange rate; the unavailability of some product lines; and the fact that JLR does not have models competing in the small-car premium market, which has seen significant growth in recent years.
The total new premium car market in South Africa has proved resilient, growing 2.6% in 2014 over 2013, with much of this growth driven by small premium cars, such as the Mercedes-Benz A-Class, he explains. (This is an exceptional performance, considering that the total new car market in South Africa was down 2.5% in 2014 compared with 2013.)
“We see 2015 as a growth year for Jaguar Land Rover, especially as we have some new models entering the market,” says Gouverneur.
Late May will see the introduction of the new Discovery Sport, as the first member of the new Discovery family.
“This is a big one for us."
In the fourth quarter of this year, the company will launch the Jaguar XE, which will be the brand’s smallest car released to date, as well as the most fuel efficient, promises Gouverneur.
The vehicle is similar in size to a C-segment vehicle.
“So, we have a model replacing an ageing competitor and we have a brand new entry into the market,” says Gouverneur.
Into the future, he believes the Jaguar F-PACE should also prove successful in the local market, as it takes the premium brand into the popular sports-utility vehicle (SUV) segment for the first time in its history.
Models that held their own in 2014 in South Africa were the Range Rover Sport, almost doubling sales, and the Jaguar F-TYPE sportscar.
Globally, JLR sales were up 9% in 2014 over 2013, with Land Rover achieving sales of 381 000 units, and Jaguar 81 570 units.
“In the last five years, Jaguar Land Rover has tripled turnover, as well as doubled sales and employment globally,” says Gouverneur.
JLR has been a wholly owned subsidiary of Tata Motors since 2008. The South African and African operation is fully owned by JLR.
“JLR will seen an investment of £3.8-billion in 2015 in products and infrastructure,” says Gouverneur.
JLR has 34 dealers in South Africa, which will all see a change in corporate identity over the next two years as the brand experience is harmonised across the country.
In Africa, there are 14 dealerships across eight countries. Sales are largely oriented towards Land Rover, with Kenya, Zimbabwe and Nigeria the largest markets.
Gouverneur believes the total South African new car market will be flat in 2015 compared with 2014.
“The economic sentiment is not there to support growth in South Africa, and there is an underlying concern about interest rates.”