The new model is based on the C-X17 concept car which was first showcased at the Frankfurt motor show in 2013.
The launch of the SUV will create new jobs at Jaguar's Solihull Plant where more workers are needed to help build the cars.
Chief executive Ralf Speth told the Telegraph "this once again demonstrates our commitment to the UK and the advancement of a hi-tech, highly skilled, manufacturing-led economy."
Entering into the SUV market will make Jaguar better able to compete with its rivals such as Audi and BMW who already have an established foothold there.
The luxury SUV market has picked up in recent years thanks to lower petrol prices and an improving economic outlook.
The move is part of the luxury car brand Jaguar's plan to beef up its product offering amid an increasingly competitive luxury vehicle market.
In October, it announced the opening of its first overseas factor with the Chery Jaguar Land Rover Automotive Company plant in Changshu, just north of Shanghai.