Jaguar Land Rover doubles down on subscription service
British car-maker rebrands and rolls out latest Defender and I-PACE to subscribers in belief 10 per cent of all sales will be via subscription by 2025Jaguar Land Rover (JLR) has launched its new Pivotal car subscription service in the UK just a day after Mercedes-Benz abandoned a similar scheme in the US.
Created, like other similar car subscription services, to challenge traditional car ownership and leasing, Pivotal is claimed to be a no-commitment service that allows members to swap between models or pause their membership.
A monthly fee includes all rental, insurance, maintenance and rego fees and allows users to swap their car every six months.
This, says JLR, will enable some of its customers to change their vehicle to reflect their lifestyle, which could include a new job or growing family.
From launch, the Land Rover Discovery Sport, larger Discovery, Jaguar I-PACE and F-PACE, plus the full Range Rover line-up is included.
Later on, Pivotal will introduce the all-new Defender and add plug-in versions of the Disco Sport and Range Rover Evoque.
In the UK there are three tiers – Blue, Indigo and Violet – that range in price from £750 (A$1350) to £1600 ($A2900) after a one-off £550 ($990) is paid.
Aimed squarely at the 20 per cent of younger customers who don't own a car, JLR says it believes that by 2025 more than 10 per cent of all cars manufactured will be for subscription services in Europe and the US.
Like Mercedes-Benz, which was forced to cancel its similar service after a trial failed to attract enough users in the US, JLR says subscription services attract younger users who are new to the brand.
The British car-maker estimates 80 per cent of members from its 2018 Carpe scheme had never owned a Jaguar or Land Rover.
Commenting on the launch of Pivotal, JLR UK MD Rawdon Glover said: “The future of mobility has never been more in the spotlight and our customers are increasingly looking for more flexibility in the way they interact with us.
“We are constantly looking at new and innovative ways to deliver the best solutions for our customers and adding the Pivotal subscription service to our portfolio is the latest in a line of new services that put our customers’ needs first.”
There's no word yet if Pivotal will be expanded to the Australian market.
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