Iconic automotive brands, now find themselves in similarly precarious positions. Faced with declining profitability, the rapid rise of Chinese automakers in the mid-luxury market, and the global shift toward electric vehicles (EVs), the company must make bold moves or risk falling into irrelevance. Jaguar’s recent pivot to ultra-luxury EVs is its attempt to “cut the rope”—a high-stakes gamble to redefine its future. 

For years, brands like Jaguar have struggled to maintain profitability. The rise of Chinese automakers, unburdened by legacy costs and design constraints, has intensified competition in the mid-market luxury EV space. Brands like BYD and NIO are producing technologically advanced vehicles at price points that challenge traditional players like Jaguar. These competitors are not just nibbling at the edges; they are going to eat the whole picnic. 

This is why I like Jaguar’s response. A bold rebrand that shifts its focus entirely to ultra-luxury electric vehicles. This strategy sheds its previous identity, targets a new audience, and attempts to carve out a niche in a highly competitive market. But as with Simpson’s crevasse descent, the success of this strategy is far from guaranteed.