Details of luxury carmaker Jaguar's new compact saloon dubbed the baby jag were revealed as the company geared up for the start of full production.

The four-door car, to be called the Jaguar X-Type, is expected to double the company's total sales to 200,000 after it hits the showrooms next summer.

The new car, which analysts believe will accelerate Jaguar from a niche player to a major competitor in the premium vehicle market, will be built at Halewood on Merseyside, which has undergone a 300m redevelopment.

No prices have been announced but it is believed the new car will start at about 23,000.

Up to 80 per cent of the X-Types will be exported, mainly to Europe and America, and will compete with the Mercedes Benz C class, Audi A4 and BMW 3 Series. "Customers for the X-Type typically will be younger than traditional Jaguar buyers with notably different needs. We also expect X-Type to attract far more female buyers, said Jaguar's managing director Jonathan Browning.

Jaguar currently builds three model ranges the XJ luxury saloon and XK sports car, both produced in Coventry, and the S-Type saloon, which is built in Birmingham.