Jaguar may look to replace the XE and XF sedans with an all-new hatchback-style model that could appeal to younger buyers.

While the British car manufacturer hasn’t ruled out the possibility of directly replacing the slow-selling XE and XF, it is reportedly considering two options for a single model that could replace both the XE and the XF. The first is a new eco-focused compact sedan that could be offered in mild-hybrid and plug-in hybrid forms while the other is a smaller car that could be about 4.5 meters (14.7 feet) long.

Read Also: Jaguar Land Rover Planning J-Pace, Road Rover Electric SUVs, Fate Of XE And XF Undecided

“I’d love to do some smaller cars and it feels as though the time is right,” Jaguar design chief Julian Thomson recently told Autocar. “Jaguar needs a global product that could appeal to younger buyers, and more females as well. Our values are ideal for owners who want more efficient cars but still like design quality, luxury and cars that are nice to drive. But it’s a tough sector. You need big numbers, which means big factories and a big organization to sell them. But that’s definitely where I would like us to be.”

Jaguar R-D6

In creating the hatchback, Jaguar could draw on inspiration from the R-D6 concept unveiled way back in 2003. However, the company could have trouble finding a platform that could underpin such a model.

The all-electric successor to the Jaguar XJ will premiere next year and be the first model from Jaguar Land Rover underpinned by its new MLA architecture. It remains unclear if this platform can underpin smaller and less expensive cars, however.

If it can’t, the automaker may be forced to partner with another manufacturer on a platform-sharing project. One potential partner could be BMW that uses its front-wheel-drive UKL architecture for the 1-Series, 2-Series Gran Coupe, and the Mini hatchback.

In early 2019, Jaguar shot down suggestions that the XE and XF could merge into a single model so it’s worth keeping suggestions of a new hatchback successor with a grain of salt.