JaGUar? Luxury automaker defends controversial rebrand amid pivot to EVs

Luxury carmaker Jaguar has defended a rebrand that drew widespread criticism on social media this week.

The company, part of Tata Motors-owned group Jaguar Land Rover, released a new logo that saw it ditch its iconic "leaper" big cat branding, and promotional videos featuring brightly-dressed models — but no cars.

In a release, Jaguar said the media showcased its "dramatic new creative philosophy," branded "Exuberant Modernism," which will "inspire future vehicles."

The designs generated tens of thousands of responses on social platforms including Facebook, Instagram, X and LinkedIn — and the majority were negative.

Some criticized the removal of the big cat imagery — which has featured on the car since the 1950s — the font choice, and the fact that Jaguar will now be styled JaGUar for "visual harmony," according to the company.

Others took aim at the fact that the content did not feature any vehicles or machinery and described the aesthetic as out-of-touch, given the classic British brand's somewhat macho previous campaigns.

"Our brand relaunch for Jaguar is a bold and imaginative reinvention and as expected it has attracted attention and debate," the company said in response to a request for comment.

"As proud custodians at such a remarkable point in Jaguar's history we have preserved iconic symbols while taking a dramatic leap forward," the business said.

"The brand reveal is only the first step in this exciting new era and we look forward to sharing more on Jaguar's transformation in the coming days and weeks."

Gary Jenkins, managing director of content agency No Brainer, said that if the automaker's intention was to garner as much attention as possible, "they've certainly succeeded."

"Everyone has an opinion on this rebrand, whether it's 'wokeness,' the lack of a car anywhere to be seen in the new rebrand video, bold, iconic logo changes, the loss of the traditions of the brand, but also excitement and intrigue ... People are talking about Jaguar, including people outside its traditional customer base," he told CNBC.

The advertising campaign came after Jaguar earlier this month halted all new car sales as it prepares to relaunch as an electric-only company in 2026 — part of a wider industry shift that is presenting numerous challenges for automakers.

Three new electric models are expected from the company in the coming years, including a four-door GT car expected to have a six-figure starting price. It will showcase a new electric vehicle design concept at Miami Art Week next month as it targets a new ultra-affluent market.

"We need to re-establish our brand and at a completely different price point so we need to act differently. We wanted to move away from traditional automotive stereotypes," Jaguar managing director Rawdon Glover told the Financial Times in an interview published Friday.

Glover also condemned "the level of vile hatred and intolerance" expressed by some people commenting on the marketing video and denied it was "woke."

Looking beyond its existing base to a new audience is a risk for Jaguar; but the very high-end corner of the luxury market has greater margins where the company will be required to sell fewer units to increase profitability, automotive industry commentator Mark Smyth told CNBC.

No Brainer's Gary Jenkins noted that Jaguar is already grappling with falling sales over the long-term and the electric vehicle market is hyper-competitive.

Despite Jaguar reporting a 39% annual uptick to 13,528 unit sales in the year to April 2024, the figure is down from 81,570 a decade ago.

Jenkins said that the backlash to the rebrand appeared to be expected by Jaguar, and the campaign's impact will take some time to play out.

"From the social media responses alone, it is clear that Jaguar's marketing team was ready for this ... You can see the team has been prepped to respond and were ready for the backlash, firing responses to intrigued, excited and enraged followers of the brand across channels," he said.

"Detractors will make some loud noises over the next few days and weeks, but the proof as to whether this is a success or not will be in the sales."

Jaguar Land Rover posted its eighth straight profitable quarter this month, even as revenue came in flat on an annual basis in the first half of the year.