The company officials said that the XE sports sedan, which is expected to be priced at 27,000 pounds in Britain, would be the first model in the XE series.

The latest launch is expected to challenge a luxury car market long dominated by German cars like BMW 3 series, Audi and Mercedes-Benz models.

"We think the customers are likely to be younger, earlier in their life stage, they are more likely to have children, they are more likely to be female," Nick Miller, chief program engineer of the XE series said.

"Recycling does allow you to reduce the cost of the aluminum," he said, with the metal to form 75 percent of the car body's surface area, the highest of any similar vehicle according to the firm. The XE sports sedan sports a five-door model with a sleek design.