Jaguar unveiled the all-new XE sedan last week. The new model is expected to challenge the BMW 3-Series and other compact luxury sedans in markets around the world. Source: Jaguar Cars.

Jaguar Cars has unveiled a couple of versions of its all-new XE sedan. The new XE is a long-anticipated (and much-needed) Jaguar: It's the brand's attempt to compete in the (very tough) market for compact luxury sedans.

Since India's Tata Motors (NYSE:TTM) acquired Jaguar and Land Rover from Ford in 2008, the old British brands have followed an incremental approach to new-product development. But Tata made it clear that Jaguar would eventually get a slew of new products; none of those products may be more important than the XE sedan and the XE-based crossover SUV expected to follow.

As the Motley Fool Motor Money duo of John Rosevear and Rex Moore explain in this video, the XE will have a tough time stealing sales from the segment's shining star, BMW's (NASDAQOTH:BAMXF) 3 Series. BMW considers the 3 Series its most important product; it is widely regarded as one of the world's best cars, and it has been for years the standard to which BMW's rivals aspire.

But the XE does have a chance of doing what Jaguar hopes -- leading new buyers to the old British brand. Check out the video to hear John's and Rex's thoughts on the new Jaguar, and then scroll down to leave a comment with your thoughts.

John Rosevear owns shares of Ford. Rex Moore has no position in any stocks mentioned. The Motley Fool recommends BMW and Ford. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.