Jaguar Plans Family of Entry-Level Luxury Cars

Tata Motors Ltd.'s Jaguar unit will expand its lineup with three new entry-level luxury cars beginning in 2015, according to the Financial Times, which cites unidentified sources.

The first of the new vehicles will be a small sedan, followed by a wagon and crossover. All three models will share a new platform and feature aluminum bodies, the newspaper says.

Tata is expanding its Land Rover factory in Solihull, England, to produce the vehicles. The FT says the project will use a "significant chunk" of JLR's $4.2 billion ( 2.8 billion) capital spending budget.

The vehicles will compete in the fast-growing market for small luxury cars with such rivals as the Audi A3, BMW 3 Series and Daimler-Benz C Class.

Analysts point out that Jaguar has not competed in that segment since the Ford Mondeo-based X-Type sedan went out of production in 2009.