The 2015 Jaguar XE will be the most efficient Jag ever, because it'll do an average of 75mpg and emit just 99g/km of CO2, according to the company.
The XE will be a rival to the likes of the BMW 3 Series, Audi A4 and the recently launched Mercedes C-Class.
The engines are an all-new range, called Ingenium, and described by Jaguar as 'class-leading'.
The engine with the headline 75mpg figure will be a 2.0-litre diesel, while there will be a selection of petrol and diesel units to choose from. Each engine will be up to 80kg lighter than its current equivalent in the Jaguar range.
This level of efficiency is aided by a lightweight body, which is more than 75% aluminium.
Its front suspension will be similar to that in the F-type sports car, while the rear set-up will be unique to the XE and will be constructed partly from aluminium to keep down weight.
The XE will also get the company’s new electric power steering system, which promises added feel and improved low-speed manoeuvrability.
Another technical first for the XE will be an All Surface Progress Control system. This has been developed with assistance from sister company Land Rover, with the aim of giving the rear-drive XE better traction when pulling away on slippery surfaces.
The Jaguar XE will be officially unveiled in London on 8 September, with sales expected to begin in early 2015.
Further reporting by John Howell