Jaguar has tonight lifted the lid on its latest model - the all new E-Pace compact SUV.

The E-Pace will sit below the F-Pace in the marque's SUV line-up which will be further expanded when Jaguar launches its all-electric I-Pace next year.

Unusually, the new model will be produced, for the time being at least, in Austria.

The West Midlands car maker does not have a plant there but has sealed a deal with Magna Steyr to produce its forthcoming I-Pace there.

The E-Pace is to be built there as the firm's UK capacity is at breaking point, due to its continued growth.

Jaguar said the E-Pace, the design of which has been inspired by the F-Type sports car, "packs the design and performance of a Jaguar sports car into a spacious, practical and connected all-wheel-drive vehicle".

Jaguar E-Pace
Jaguar E-Pace

Jaguar's director of design Ian Callum said: "Established Jaguar design principles ensure the E-Pace is immediately recognisable as the sports car of its class.

"Our new compact SUV combines the interior space, connectivity and security that families expect with the kind of proportions, purity of design and performance not usually associated with such a practical vehicle."

The car maker is adding more SUVs to its range due to ever increasing demand and following the success of the F-Pace, which recently landed the coveted World Car of the Year award.

The F-Pace has also contributed hugely to Jaguar's growth, boosting sales by 83 per cent last year.

Chief executive Ralf Speth has said the group is aiming to sell more than a million cars a year and expanding the Jaguar model range forms a key part of delivering on that.

Jaguar said it would be one of the most connected and intelligent vehicles in its class.

It features Jaguar's next-generation touchscreen infotainment system which connects people to their favourite apps through InControl apps.