Jaguar Plans to Expand Into the Entry-Level Luxury Vehicle Segment image

Jaguar Land Rover relies on a new family of entry-level luxury vehicles to help the automaker expand in the fast-growing segment.

The new entry-level luxury vehicles, will begin with a compact saloon in 2015, followed by a crossover SUV and estate model, all based on a new platform architecture, the first one fully developed by Jaguar Land Rover. The vehicles will be manufactured from aluminum at the Solihull plant production lines, where 1,500 new jobs will be added

“This is a massive leap forward for Jaguar,” said one person briefed on the developments, who declined to be identified as the plans have not yet been made public. “It’s the big investment that the brand desperately needs.”

Jaguar Land Rover has reported increased sales while under Tata’s ownership, mainly due to Land Rover. Tata will make a substantial investment in the less profitable Jaguar, to increase its profitability and success, and also widen its global customer base. The new Jaguar models will help the automaker reach into the fast-growing luxury SUV and compact segments and compete with BMW’s 3-series and Mercedes-Benz’s C-Class.

The decision to plunge Jaguar into the entry-level luxury market was due to the success reached by the Land Rover Evoque model, a cheaper, compact version of a traditional Range Rover. Jaguar currently offers two sports cars and two executive saloons.