Jaguar's baby sedan,the XE, has been spotted at theautomaker’s test facility in Nurburgring, Germany.The new XE will ride on the automaker’s iQ[Al] platform and sports short front and rear overhangs along with a compact body to go up against rivals such as the BMW 3 Series, Audi A4 and Mercedes-Benz C-Class.IMAGE GALLERY: 2014 Jaguar XE (Spy)The spiritual successor of the X-Type will receive a generous engine family that will include a high-output unit enabling the model to reach a maximum speed of 300km/h. FRUGAL XEJaguar is planning a frugal variant that will have claimed emissions rating of less than 100g/km. The Jaguar XE could make its debut at the 2014 Paris auto show to be launched in 2015.Jaguar Land Rover's design director Ian Callum said: "The Jaguar XE is every bit a modern Jaguar; more compact but visually striking. Customers will expect a great deal from a mid-size Jaguar - it must be practical but premium."We never forget we are designing a Jaguar and that means it must be as exciting to look at and drive as it is brilliant to run and practical to own. We believe we’ve done just that with the Jaguar XE.”FUTURE JAGUAR MODELSThe XE will boost Jaguar's sales in the entry-level luxury sedan market. The XE will also be launched with an all-wheel drive version (for the US) and a Sport Brake variant. A convertible and hybrid could also be a part of the range. Jaguar will have X cars in its segment following the launch of the XE, XF and XJ. The XK range will be discontinued by the end of 2014 but Jaguar willlaunch its C-X17 in 2015.