JAGUAR will have a BMW 3 Series competitor by 2015.

The baby Jaguar – the first since the X-TYPE – will compete with the BMW 3 Series, Audi A4 and Mercedes-Benz C-Class.

And if the Jaguar XF was the answer to many small business owners’ dreams – then the new small Jaguar saloon will do the same for many SME company car drivers.

The small Jaguar will be built at the Land Rover factory at Solihull, Birmingham, which is currently being constructed.

It will be powered by a range of four-cylinder petrol and diesel engines as well as a 186mph V6 unit.

The four-cylinder diesel will see Jaguar slipping under the 100g/km barrier for the first time with a 99g/km model – effectively putting the small Jaguar in the 17% company car tax band for the 2015/15 tax year.

The four-cylinder engines will also be built in Britain, at Jaguar’s Wolverhampton engine plant, which is also under construction.

The new small Jaguar saloon will be the first car to be built using Jaguar’s new iQ[Al] aluminium architecture.