Unveiled in London (read our commentary 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a segment dominated by the Audi A4, BMW 3 Series and Mercedes-Benz C-Class, which it left in 2010 when the X-Type was withdrawn.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. With an all-new 2.0-litre diesel engine developed in-house, and set to be shared with the Land Rover Discovery Sport, it will offer class-leading fuel economy of 75mpg with CO2 emissions of 99g/km in 161bhp 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. Service intervals of 21,000 miles and low insurance premiums, helped by driver assistance systems and a simplified repair process, are said to target reductions in running costs.

Safety systems aside, 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.