Jaguar is looking to take on the Audi A4 sedan and Mercedes-Benz C-Class by introducing an all-new small sedan. The new model will feature a front-wheel drive layout and will be powered by a range of new Jaguar Land Rover three- and four-cylinder engines.
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The new small sedan is set to be built in the UK and India, with a big focus on capturing the Chinese and Indian markets. According to an Autocar report, the new model won't necessarily be a budget model. Despite being at the bottom of the Jaguar sedan food chain, it will showcase all the usual luxury Jaguar appointments.

Up front, the baby sedan will be powered by Jaguar Land Rover's new 1.5-litre three-cylinder engine, as well as new 1.8-litre and 2.0-litre four-cylinder units. All engines are said to come in turbocharged form, in both diesel and petrol flavour. Potential power figures are yet to be revealed.

Behind the engines will be two different transmission options: an eight-speed automatic and a nine-speed automatic. The transmissions will contribute to maximum fuel efficiency, and help Jag obtain an average fuel consumption rating below the CAFE standards set to be in full swing by 2016. To do this, the mini Jaguar will need to achieve a rating of under 5.7L/100km.

The small Jaguar is expected to come in more than just sedan form too. Jaguar Land Rover boss Carl-Peter Forster recently said that the brand needs a “successor to the X-type… and we need [it] in several variations". A coupe and convertible are possible variants being planned.

The new model will likely hit the market sometime before 2015.