DIESEL will be a no-cost option when Jaguar drives its landmark oil-powered X-type into showrooms this autumn. It will also be its first four cylinder model in decades.

The entry-level price has been set at £19,995 on-the-road for the first diesel model to be rolled out by the famous Coventry firm – and with price-tags of £22,245 and £22,995 respectively, Sport and SE versions will also mirror the current petrol line-up.

Jaguar corporate operations manager James Drake-Lee, said: 'Jaguar's reputation has been built on linking driving excitement with value for money and this rationale continues with our move into diesel. We want this new range to be just as compelling as the present X-type.'

Powered by a revised version of the acclaimed 2.0-litre TDCi common rail unit developed for the Ford Mondeo, the range will be available from September. The burgeoning diesel market is key to swelling lower-than-expected sales of the car.

Drake-Lee added: 'I don't want to talk about numbers, but 50% of the 19,000 X-types sold last year went to corporate users. Now we're hoping to win interest from those drivers who are conscious of benefit-in-kind charges.'

With a 0-62mph acceleration time of 9.5secs and a 125mph top speed, the diesel X-type closely matches its petrol-driven stablemate on performance.

But the 128bhp car will offer clear advantages in operating costs with a class-leading CO2 emissions figure of 149g/km and combined fuel economy of 50.3mpg. After losing business to rivals such as Audi, BMW and Mercedes-Benz in the prestige diesel sector for several years, Jaguar will field a second diesel line in 2004 when the S-type becomes available with an advanced new 2.7-litre V6 engine that has been developed jointly with PSA Peugeot-Citroen.

The 24-valve V6 diesel will be Euro IV compliant and offer power outputs of up to 204bhp with up to 325lb-ft of torque.