Skip advert
Advertisement
Opinion

JLR is moving in the opposite direction to VW-Audi and Hyundai-Kia, and that’s not a good thing

Instead of following the successful business model adopted by VW-Audi, Toyota-Lexus and Hyundai-Kia, Mike Rutherford thinks JLR is moving in the opposite direction

Opinion - JLR

UK car-manufacturing numbers fell through the floor in the last month or so. In June, the 27-per cent plunge (vs June ’23) was debilitating and, frankly, unsustainable for the British automotive business. 

But the disappointing numbers are explained away by the Society of Motor Manufacturers and Traders. All this was “expected” and “caused by multiple model changes” as “factories repurpose,” it stated. Also, don’t forget: “Manufacturers are retooling production lines to make electrified models.”  

Fair enough. But everything from model changes to retooling and repurposing in the short term aren’t the major, long-term problems. Bigger dilemmas by far go like this: we have to accept and deal with the fact that the usual suspects – Japan, Germany, South Korea, Spain, USA and France, in that order – already build more cars than us and will almost certainly continue to do so. But more importantly, the huge, comparatively new kids on the block – China in particular, but India too – are also giving us a comprehensive kicking on the car-production front. As are Brazil, the Czech Republic, Indonesia and Slovakia. And the unlikeliest of suspects – Iran and Turkey – are beating Blighty, too.     

Advertisement - Article continues below

Putting China and India aside, I consider Germany, Japan and South Korea among the most respected, successful, established and tried and tested car producers. The priority for their domestic makers is mass production of non-premium and premium cars. Why? Because that’s where hundreds of thousands of jobs, tens of millions of sales, and billions of profits come from. 

Skip advert
Advertisement
Skip advert
Advertisement - Article continues below

Much, much further down their priority list is making and selling a tiny handful of luxury cars. Why? Because very few of the public can afford such models. True, the high profit margins might be tempting. But as Volkswagen-Audi, Toyota-Lexus and Hyundai-Kia show, it makes far more sense to produce millions of cars that rake in small to medium profits per unit than it does to build a few thousand luxury models that are highly profitable.   

But instead of following the consistently successful business model adopted by these world-beating duos, the closest thing Britain has to a home-grown pair (Jaguar Land Rover) is moving in the opposite direction. Currently, it’s a small outfit on the global stage. A realistic aim would be to crank up production and become medium-sized. Far more ambitious and considerably harder to establish would be to win entry into the sort of ‘large and loud’ territory that the Seoul brothers – Hyundai-Kia – have somehow managed to occupy. But if they can do it, why can’t the Jag-Land Rover sister act?

Instead, the separate but connected Jaguar and Range Rover brands are going further and further down the luxury-car route. Inevitably, this means JLR will build fewer cars, which in turn means that Britain will sink even further down the table of car-producing nations. Last year, we produced around half as many cars as half a decade earlier. By the end of 2024, and despite the alleged ramping up of electric car production, I estimate that annual output here will be lower than in 2023. And we know one of the main reasons, don’t we? 

Do you agree with Mike? Let us know your thoughts in the comments section...

Skip advert
Advertisement
Chief columnist

Mike was one of the founding fathers of Auto Express in 1988. He's been motoring editor on four tabloid newspapers - London Evening News, The Sun, News of the World & Daily Mirror. He was also a weekly columnist on the Daily Telegraph, The Independent and The Sunday Times. 

Find a car with the experts

Skip advert
Advertisement

Recommended

New electric cars coming soon: the fresh EVs of 2025 and beyond
Electric cars coming soon - header image

New electric cars coming soon: the fresh EVs of 2025 and beyond

The EV market is growing faster than ever, and these are the incoming cars to keep an eye on
Best cars & vans
1 Aug 2025
Range Rover's secret mid-size EV: Inside its £500m factory
Halewood factory - Phil with Range Rover outside

Range Rover's secret mid-size EV: Inside its £500m factory

We take an exclusive look inside JLR’s revamped Liverpool site as the brand gears up for EV production
Features
18 Jul 2025
500 job losses at Jaguar Land Rover “disappointing”, says Government
Range Rover - main image

500 job losses at Jaguar Land Rover “disappointing”, says Government

A voluntary redundancy scheme will see 500 managerial positions cut at Jaguar Land Rover
News
17 Jul 2025
Land Rover Freelander to return in 2026, but not to the UK
New Land Rover Freelander name logo

Land Rover Freelander to return in 2026, but not to the UK

The Freelander name will be used for new range of electric cars, initially just sold in China but possibly coming here as well down the road
News
9 Jul 2025

Most Popular

Car Deal of the Day: Bag a desirable plug-in hybrid BMW X3 M Sport for less than £380 a month
BMW X3 - full width, front

Car Deal of the Day: Bag a desirable plug-in hybrid BMW X3 M Sport for less than £380 a month

The new BMW X3 is fresh out of the blocks, but you can already lease a well-specced one for an eye-opening £378 a month. It’s our Car Deal of the Day …
News
17 Aug 2025
Best car tyres to buy now 2025: top tyres tested and reviewed
Auto Express Summer Tyre Test 2025 - header image showing a Volkswagen Golf undergoing wet weather cornering

Best car tyres to buy now 2025: top tyres tested and reviewed

Nine brands go head to head in our annual test, but which one should you put on your car?
Product group tests
13 Aug 2025
What cars qualify for the electric car grant? Full list with our best (and worst) picks
Electric car charging mega test - Renault 5 front angled

What cars qualify for the electric car grant? Full list with our best (and worst) picks

More than 20 electric cars are now eligible for a Government-funded discount. Which should you go for from the ever growing list?
News
15 Aug 2025