Jaguar needs a BMW 3 Series-rivalling small saloon sooner than a new SUV, company boss Adrian Hallmark has told What Car?.
Hallmark said: 'A crossover is not a priority from an economic point of view, the global saloon market is still bigger.'
The company's US dealers are thought to be keen on an entry-level Jaguar to boost sales and attract new customers to the brand. Such a car would also make the company far more attractive to executive-car buyers in Europe.
Like all future Jaguar saloons, the 3 Series rival is likely to be constructed from aluminium, and be available in both rear- and four-wheel-drive variants.
It is also likely to spawn a family of new models to ape BMW's line-up, including a small estate, coupe and cabriolet.