Jaguar is working on a compact entry level sedan which will lock horns with BMW 3 Series, Audi A4, Mercedes C Class and so on.
Jaguar's new sedan will be smaller than all the other cars in its portfolio and will use the lessons learnt from the Jaguar X Type, a defunct compact sedan which was based on the Ford Mondeo platform.
The X Type was never close to the projected sales figure throughout its span as it lacked the luxury quotient associated with the Jaguar brand.
Unlike the X Type, Jaguar's next attempt at compact premium sedan segment will be stuffed with luxury that are seen in bigger black cats such as the XF and the XJ.
The car will be bearing an aggressive and sporty look like the current Jags and will make use of the new family of compact four cylinder petrol and diesel engines that are being developed. The Jaguar sedan is expected to lay emphasis on driving pleasure to take on the BMW 3 Series which is the best selling car in its segment.
JLR believes that China is going to be the biggest market for the new compact sedan and hence may produce the car locally. The RHD version could be assembled in India if Jaguar is serious about beating the Germans.
The compact sedan is expected to be the volume garner of the Jaguar brand and Tata Motors is betting big on it.