Four-door focus for Jag XE

Jaguar will concentrate its efforts on the sedan variant of its new mid-size all-alloy XE when it launches internationally later this year.

Although the British brand is expected to eventually offer at least estate and coupe variants of its first direct rival for the BMW 3 Series and Mercedes-Benz C-Class in more than a decade, the car-maker will devote its efforts to cementing the XE's place in the ultra-competitive premium segment as a sedan before expanding the range.

That’s the word from Jaguar insiders at last week’s launch of the F-TYPE Coupe in Spain. They described the XE as “Jaguar's Evoque” -- a reference to the game-changing volume boost the stylish soft-roader delivered to Jag's sister brand Land Rover.

Although Jaguar grew its total production volume more than 40 per cent in 2013, the car-maker only built just over 77,000 cars. This compares to the seven-figure production levels of key premium brands like BMW and Mercedes-Benz.

Jaguar initially stated the XE would debut in 2015, but the same Jaguar insiders told motoring.com.au last week that first media drives of the XE would likely take place before the end of 2014.

The company is currently considering public debut opportunities for the all-important car. It's likely that it will not be launched at any of the late-year motor shows but at a standalone event.

The XE will debut Jaguar's new all-aluminium iQ-Al modular architecture, which features longitudinal engine orientation (like its arch-rivals, the 3 Series and C-Class, but not the Audi A4) but can be built in both rear and all-wheel drive versions. The latter variant will feature in the production version of Jaguar's first crossover, based on the C-X17 crossover concept.

Jaguar's all-wheel drive system is an on-demand system that features an electromechanical centre clutch to distribute drive to the front differential and wheels. There is no relationship between the system and the transverse off-road capable system used in the Evoque and the upcoming Freelander replacement, which could be called the Discovery Sport.

Jaguar's initial targets for the XE are modest -- at least in sales terms. They claim the car will offer the "best value" in the 3 Series segment.

"The 'heart' connection is there with buyers. We've got to get the head connection right,” our Jaguar insider said. In markets like Europe, that could include extended warranties and stronger connections with business and user-chooser buyers.

The XE will be the first Jaguar to use the brand's new ‘Ingenium’ four-cylinder engines, but will, in its flagship version, also feature a version of the supercharged petrol V6 used in the F-TYPE Coupe.

The medium prestige segment is the financial powerhouse of the main Euro prestige brands. BMW built around 500,000 examples of its 3 Series in 2013. In total the segment accounts for more than two million sales annually. Thus even a five per cent market share would see XE sales surpass the rest of the Jaguar range combined.