The entry-level sports crossover segment is bound to get more crowded. Autocar is reporting that Jaguar could soon join segment with an X1 competitor which be priced below the XE sedan.

“A family [of CUVs] is not confirmed but we are investigating it,” Steven de Ploey, Jaguar’s brand director, told Autocar. “If we want to grow, a compact model is the obvious opportunity. The arguments about this are twofold. It has to be a Jaguar in design and performance, and it would be a challenge to do this. The second is the business, both in terms of scale and competition.”

Ploey also points out that there are a number of issues preventing a vehicle being sold below the Jaguar F-Pace.

Jaguar-F-Pace-2

Jaguar F-Pace Concept

“You’d not just be competing with premium brands but high-end mainstream manufacturers, too. There are lots of other things we have to do before this, but we have opportunities and permission to play there,” de Ploey said. “There is also a cost challenge. We’d need a different architecture. What we have is scalable, but that low? You’d really have to investigate taking it down. You need to tick the box with the business case.”

BMW is due to launch the second-generation X1 this year, a completely redesigned crossover built on the UKL front-wheel drive architecture. The new X1 and a future Jaguar crossover would take on the likes of Mazda CX-3, Honda HR-V, Jeep Renegade, Mercedes-Benz GLA and Audi Q3.