Jaguar has confirmed pricing and specification levels for its forthcoming XE saloon. It will cost from £26,995 and will hit the roads next May.

It will launch with a new engine family – dubbed Ingenium. The 2.0-litre diesel version will have a choice of two power options – 163hp and 180hp. The former emits 99g/km CO2 on the Euroean cycle and achieves 75mpg, according to Jaguar.

Petrol-wise, the 2.0-litre unit will be offered in 200hp and 240hp formats. Jaguar has not released any fuel consumption or emissions information yet.

The engines will be mated to either a six-speed manual gearbox or the ZF eight-speed automatic ‘box that’s found in the XJ and F-Type.

Satellite navigation, cruise control, 17-inch alloys and DAB radio is among the generous standard specfication level in the XE.

All Surface Progress Control, Jaguar’s traction management system – which the firm describes as being like a low-speed cruise system – makes its debut on the XE. It functions between 2mph and 19mph.

 The British car company is also offering the XE with a stereo camera that can be used to control safety systems such as its traffic sign recognition software.

 Jaguar’s BMW 3-series rival will also be offered with an optional laser head-up display.