Jaguar is looking to make it big with small models such as the XE and E-Pace but company could eventually offer something even more compact.

Speaking with Autocar, Jaguar design director Ian Callum said the company currently doesn’t have any plans for an Audi A3 or Mercedes CLA competitor but he’d like to think it’s a possibility.

Besides talking about smaller models, Callum confirmed the next-generation XE will continue to be rear-wheel drive. This isn’t terribly surprising as most of the car’s key competitors are rear-wheel drive but Callum went on to say the company will work to create greater separation between the XE and the XF.

The models can be a bit hard to tell apart from a distance so Callum hinted the next-generation XE and XF will have a “more flexible front” despite having the same grille. This likely means the models will receive distinctive headlights and possibly unique air intakes.

Callum also seemed open to the idea of building additional electric vehicles off the architecture that underpins the upcoming I-Pace. The crossover will be unveiled at the Frankfurt Motor Show in September and should have a range of at least 300 miles (482 km).

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