Jaguar has unveiled its new XE compact saloon, the brand's 99g/km BMW 3-Series rival, at a London launch.

The Jaguar XE is the first model developed from Jaguar Land Rover’s new modular vehicle architecture, which the company claims will set the standard for driving dynamics in the midsize segment. It says the long wheelbase and low seating position enable perfect proportions and a streamlined, coupe-like profile.

Kevin Stride, vehicle line director, Jaguar XE, said: “Jaguar’s position as the leading premium manufacturer of aluminium vehicles allowed us to develop a light, stiff body structure that is ground-breaking in its class. It enables the XE’s advanced chassis technologies to deliver an unprecedented balance of agility and levels of refinement previously found only in vehicles from the segments above.”

As well as a 3.0-litre V6, models will be powered by efficient 2.0-litre, four-cylinder petrol and diesel engines matched to smooth-shifting six-speed manual and eight-speed automatic transmissions. The diesels – part of Jaguar’s all-new Ingenium engine family – provide exemplary fuel consumption and CO2 emissions from 75mpg and 99g/km.  Infotainment systems are also improved, with the XE’s all-new InControl infotainment system offers the latest technologies to connect car, driver and the outside world. An eight-inch touchscreen features a clear, intuitive graphical interface and fast response times.