2021 Jaguar XE will make it to Australia, arriving early next year.

Jaguar has announced an updated XE will arrive in Australia early next year.

There had been talk the premium medium sedan could be axed in Australia after it was announced earlier this year it would be discontinued in the US.

However, Jaguar has announced the XE will arrive with several upgrades to help in its battle against the likes of the BMW 3 Series, Audi A4 and Mercedes-Benz C-Class.

Once again, a 221kW/400Nm 2.0-litre four-cylinder petrol will be the sole powertrain option, however this time it offers all-wheel-drive for the first time.

Other additions include the new Pivi Pro dual-sim infotainment system, with upgrades to the infotainment and vehicle systems available over the air.

There’s a more effective “Activity Key”, which is worn like a wristwatch and allows owners to leave the key fob at home, plus new Cabin Air Ionisation with “PM2.5 filtration” to help capture ultrafine particles “and allergens”.

Given the XE was given a facelift just over a year ago there have been no major design overhauls, though there’s a new steering wheel and seats.

Standard safety equipment has been expanded to include adaptive cruise control, lane keep assist, a rear collision monitor and 3D surround camera.

A new R-Dynamic Black variant will join the line-up priced at $69,990 drive-away and offering a black exterior pack, boot-lid spoiler, 19-inch five split-spoke gloss black alloys, red brake calipers, gloss black veneer, bright medal pedals and a Meridian sound system.

Pricing for the R-Design SE and R-Design HSE is yet to be revealed, but will likely cost more than their current respective starting points of $65,670 and $71,940.

Jaguar will be hoping the changes help make a dent in the crowded luxury medium passenger car space where, despite being well received, the XE lags behind its rival with just a 2 per cent market share so far this year.