Jaguar Land Rover is working on an all new baby saloon which will be sold in Asian markets like India and China. This new front-drive is also expected to spearhead sales in the US market.

Scheduled for launch by 2015, the car will be built in the United Kingdom and India. Jaguar Land Rover is the British subsidiary of Indian auto giant, Tata Motors.

Market watchers predict that this 4.5 metres long compact saloon should appeal to emissions-conscious consumers and female drivers who are generally less attracted to the traditional bulky executive cars.

Sources indicate that this baby saloon will be powered by Jaguar Land Rover's all-new three-cylinder, 1.5-litre engine and four-cylinder, 1.8 and 2.0-litre turbocharged petrol and diesels. Another likely option is that it will have Jaguar's next-generation eight and nine-speed automatic transmission gearboxes.

In downsizing into a range of frugal baby saloons, Jaguar will face competition in the showroom against the upcoming Audi A3 4.4m long and Mercedes-Benz CLC small saloons, both of which have been previewed as concepts. Both these are also front-drive cars and will target primarily the China, Indian and the US markets.

The baby Jaguar, however, won't be a budget model. Some estimates say it will cost from £22,000.

A few variants of the four-door are in the works, including a coupé and a small roadster. There are speculations of a hatchback to compete with the future Mercedes A-Class but that would be unlikely as Jaguar had already unveiled the RD-6 hatchback concept in 2003.

The compact Jaguar is expected to be based on a "mixed-materials" platform, CO2 emission at just 100 g/km, including a 1.8-litre 170 hp, four-cylinder petrol engine and a diesel block of 133 hp per litre.

While it is not published as yet how the car will be styled, there is talk that it won't be built on the avant-garde look of the latest XJ. Aerodynamic efficiency will be a necessity, though, as will a premium look to justify the price. The interior will be more modern, with emphasis on large-screen displays and connectivity, as well as a finish that will equal its rivals.