A startrescue.co.uk story...

UK car maker Jaguar is taking direct aim at Audi's A4 and BMW's 3-Series with its new XE model, which was unveiled in London recently.

Jaguar and its Indian owner Tata have ambitions to turn Jaguar into a serious contender in the premium car market. Due to this, they have put a great deal of work into developing a technologically and mechanically advanced car in the XE.

Previous forays into this German-dominated arena have not worked out well; the firm's X-type had its 'premium' edge blunted by being largely constructed from Ford Mondeo parts.

But the new XE will be available in a number of 2.0 litre petrol and diesel engines, specially developed in-house.

And with the most economical engine delivering an impressive 75mpg, the XE leads the class in terms of fuel economy. It also emits just 99g/km of carbon dioxide, so it has the environmental box ticked as well.

The styling, too, should help Jaguar shift plenty of models, being as it is based on the bigger XF model – boasting pleasant sporty curves reminiscent of a coupe.

75 per cent of the body is of aluminium construction, benefiting the XE's agility and fuel economy.

Pundits think there will almost certainly be a high performance ‘R’ model in the pipeline, but Jaguar is keeping news of it under its collective hat for now.

Any of our breakdown repair insurance customers keen to buy a Jaguar XE will have to wait until early 2015.

Prices are likely to start from £27,000.