Right now, Jaguar does not have anything that they can use to compete with the Audi A3 or the Mercedes CLA but that might change in the future. The question is how far in the future.
When talking to Autocar, Ian Callum, the design director of Audi reveal that he thinks it is possible that Jaguar will have an answer for the Audi A3 and the Mercedes CLA but he did not elaborate on that. While that is far from a confirmation, it still shows that Jaguar could still be interested and for now, that is good enough.
Besides talking about the compact future, they also talked about the Jaguar XE model saying that they plan to keep it as a rear wheel drive model. He also added that the next XE and XF will come with a very different front design despite sharing the grille design as they plan to widen the gap between the XE and XF.