Please ensure Javascript is enabled for purposes of website accessibility

Why Jaguar Land Rover Could Become the Leader in Electric Vehicles

By Nicholas Rossolillo - Feb 12, 2018 at 10:46AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The storied British automaker is getting ready with new EVs that might eventually outsell Tesla in that category.

News has been circulating regarding Jaguar's first all-electric vehicle, the I-Pace, due out later this year, and rumor has it that the company will soon unveil a couple of new all-electric vehicles (EVs) for the 2019 production year. The luxury manufacturer holds a small percentage of U.S. market share, but its recent moves could propel it into a leadership position in the world's most important electric vehicle market.

Charting automakers' EV efforts

For all the talk surrounding EVs, it's not really that big an industry yet. Over 17 million cars, SUVs, and light trucks were sold in the U.S. in 2017, and all-electric car sales were a minuscule fraction of that number. Hybrids and plug-in hybrids, which still require some old-fashioned fossil fuels, are excluded from the list below of the top five EV manufacturers in the U.S.



Number Sold in U.S. in 2017

Tesla (TSLA 1.66%)

Model S


Model X


Model 3


General Motors (GM 1.70%)

Chevrolet Bolt


Nissan (NSANY 0.13%)



BMW (BAMXF 0.24%)





Fiat Chrysler (FCAU)

Fiat 500e


Chart by author. Data source:

The Leaf is the best-seller of all time, as Nissan's model was early to the party back in 2011. Tesla is the real trailblazer, though, with three models now in production and over 100,000 vehicles sold globally last year. The company's work has proved the viability of the technology, and while things like charging infrastructure and battery technology still need some work, other companies are dumping money into their own versions.

Why Jaguar Land Rover is making waves

Enter Jaguar Land Rover, up until a couple of years ago nonexistent in the EV conversation. Later this year, the I-Pace will make its debut. It's an SUV-style EV that, like the Tesla, was built from the ground up to be an electric vehicle. Rumor has it that hot on its heels will be a version of the XJ, the company's flagship sedan, with an all-electric powertrain. This comes in the year that marks the XJ's 50th anniversary, and Jaguar Land Rover could be looking to make a big splash with its release. It's also possible that a new car-like Range Rover will be getting an EV option later this year, too.

The Jaguar I-PACE in silver driving down a desert highway.

The new Jaguar I-PACE. Image source: Jaguar.

Why is that significant? Details are still forthcoming, but those three Jaguar Land Rover models should end up in the $50,000 to $100,000 range in starting price, making them legitimate Tesla contenders. The company has also said it is committed to offering an EV or hybrid version of every model it produces by the year 2020. That means the automaker could quickly go from EV irrelevancy to possibly the best-selling EV maker out there.

My assumption is based on the sales figures for the three models in question. Here's the breakdown of sales for the F-Pace (Jaguar's first SUV and closest comparable to the I-Pace), XJ, and Range Rover Evoque (the compact SUV version) for its year-to-date fiscal year ending in March 2018.


Global Retails for Year-to-Date 2017/18 Fiscal Year





Range Rover Evoque


Chart by author. Data source: Jaguar Land Rover sales volumes.

I'll go out on a limb and say I-Pace, as well as the EV replacement for the XJ and Evoque EV option, won't sell as well as their fossil-fuel counterparts at first. However, they don't have to in order for Jaguar Land Rover to be a serious contender for the annual best-seller title. The company has reported over 440,000 total units sold for its current fiscal year, and it sold over 600,000 last year. The three models getting an EV similar or replacement now make up over a quarter of the company's total sales, and the completely reimagined XJ could get new life upon its release.

And, unlike current titleholder Tesla, Jaguar Land Rover is profitable. It also has the backing of its parent company, automaker Tata Motors (TTM 2.32%), also profitable and a leader in the burgeoning Indian auto market and greater Asia exports market. That gives the company a possible advantage in future funding of research and development of EV technology and new production models.

In short, this could be the beginning of a new leader emerging in the world of vehicle electrification.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tata Motors Stock Quote
Tata Motors
$27.38 (2.32%) $0.62
Tesla, Inc. Stock Quote
Tesla, Inc.
$674.90 (1.66%) $11.00
General Motors Company Stock Quote
General Motors Company
$36.00 (1.70%) $0.60
Nissan Motor Co., Ltd. Stock Quote
Nissan Motor Co., Ltd.
$7.81 (0.13%) $0.01
Bayerische Motoren Werke Aktiengesellschaft Stock Quote
Bayerische Motoren Werke Aktiengesellschaft
$83.20 (0.24%) $0.20
Fiat Chrysler Automobiles N.V. Stock Quote
Fiat Chrysler Automobiles N.V.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.