Unveiled in London (read review of event here) ahead of its public debut at the Paris Motor Show at the end of the month, the XE marks the carmaker’s re-entry into a segment dominated by the Audi A4, BMW 3 Series and Mercedes-Benz C-Class, which it left in 2010 when the X-Type was withdrawn.

Visually similar to the larger XF, but with cues such as the functional wing air vents and rear light signature borrowed from the F-Type, the XE features the segment’s first aluminium monocoque chassis under coupe-like silhouette, and interior space is said to benchmark other compact executive cars.

The platform has also made this the lightest, stiffest Jaguar ever made, and the most aerodynamic too. The model is powered by the newly announced Ingenium family of lightweight diesel and petrol turbocharged engines, premiering with an all-new 2.0-litre diesel engine set to be shared with the Land Rover Discovery Sport, offering fuel economy of 3.8l/100km with CO2 emissions of 99g/km in 163PS form and on the smallest 17-inch wheels.

More powerful versions of the engine will follow, and the XE will also get the brand’s only six-speed manual gearbox in addition to the eight-speed automatic used elsewhere in the range. 

The XE will feature an all-new infotainment system capable of streaming and controlling apps from Android or Apple smartphones through a USB socket. These devices will also be able to remotely unlock the car, check fuel levels, set climate control functions and reset the alarm via the new InControl app. 

A range of different body styles is also on the cards, including an estate, a coupé and a convertible.

The new XE goes on sale from the spring.