Jaguar to enter compact SUV market as it reveals E-Pace

It was possibly the worst-kept secret in the motoring world, but Jaguar has now revealed, in part, its baby brother to the F-Pace – this is the E-Pace and it will be Jag's rival to the Audi Q2 and BMW X1.

As such, it’s a crucial product for the British-based, Indian-owned carmaker. Compact SUV sales are booming and even though Jaguar’s sales have risen by 83 per cent in the past financial year, the brand still has a long way to go match the sales of its German rivals.

The E-Pace should help considerably, and these first images show that it will stick closely to the styling template of the highly successful F-Pace, Jaguar’s first-ever SUV.

Big seller

Underneath, the E-Pace shares much with the Land Rover Discovery Sport and Range Rover Evoque, which means that it should be unusually spacious compared to the others in its class (a trick that the F-Pace pulls off too) and it will use the same mix of 2.0-litre turbocharged petrol and diesel engines, under Jaguar's "Ingenium" brand.

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Expect the 163hp diesel model to be a big seller for the moment, but Jaguar is already planning ahead and is likely to use the E-Pace to launch its first ever plugin hybrid powertrain, based around a 1.5-litre three-cylinder engine, very shortly.

All-wheel drive will be optional, and the E-Pace will come with a choice of six-speed manual or eight-speed automatic transmissions. The base price for the UK market has been set at £28,500 which means that the cheapest E-Pace here should cost about €35,000. The car will get a full global unveiling on July 13th, before going on sale later this year.

Ian Callum, Jaguar's director of design, said: "The combination of sports car looks with Jaguar performance will ensure that the E-Pace stands out. Every Jaguar is designed to excite the senses, and we think E-Pace will do just that, albeit with its own individual character."