• Just three regular engines on offer
• Best for performance is P300 petrol
• Willing diesel more than powerful enough

Petrol engines

The 250hp petrol is the entry point to the range. Badged P250, it’s actually a very generous power output – the Mercedes-Benz C-Class, Audi A4 and BMW 3 Series offer 156hp, 150hp and 184hp respectively, which are significantly down on the Jaguar.

That makes it plenty punchy for everyday use – it’ll cruise effortlessly at motorway speeds, get off the line fast enough to break traction on the rear tyres if you’re not careful and offer up a satisfying kick of acceleration if you put your foot down as you would when overtaking.

The 250hp petrol offers such a good level of performance that it’s not really worth opting for the higher-powered, 300hp model. It doesn’t feel significantly faster in the real world. And, while the P300 (as it’s so badged) comes with all-wheel drive for a bit more security in slippery conditions, it actually compromises the purity of the driving experience. We’d head for the rear-drive, P250 any day of the week.

That said, if you do simply want the most powerful XE, the P300 is unlikely to disappoint as performance is strong, but only if you have the driving modes set to the most sporting.

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Diesel engine

There’s a single diesel offered in the XE – it too is a 2.0-litre four cylinder, producing 204hp and badged D200. It’s the slowest of the bunch, but it’s still no slouch. It does offer the greatest posted fuel economy, making it a good choice for high-mileage drivers or those looking to cut costs as much as possible. However, the diesel’s slightly coarse edge means it can’t really compete with the excellent diesels in the BMW 3 Series.

That said, it still feels strong enough for most and works well with the standard eight-speed automatic transmission. It’ll be the best option for long stints on the motorway, and will go longest between visits to the petrol station.

What’s it like to drive?

• XE is one of the best executive saloons to drive
• Excellent blend of comfort and agility 
• Sharp and communicative steering

The Jaguar XE is great fun to drive regardless of which engine you opt for. Jaguar has a knack for making cars that are both comfortable for passengers and involving for the driver, and the XE is one of the best of the breed. The suspension is perfectly tuned so that it doesn’t lean too much in the corners, yet it still deals well with lumps and bumps on the roads.

Jaguar has set the XE up to have quick steering, and it’s easy to feel what the road is doing through the wheel. Keen drivers will enjoy how communicative the steering is, but it’s not so darty that others won’t be able to get comfortable.

Jaguar is famed for creating cushy, supremely comfortable cars and the XE is focused on providing a smooth, comfortable ride. Up front the driver and passenger have sports-style seats that provide reasonable shoulder and thigh support even when cornering, while there is plenty of adjustment to ensure that most drivers can find a position to suit.

We found all-wheel drive versions less adept at dealing with bumps, however, as they failed to isolate passengers from the road surface as much as you’d hope on rougher tarmac. There’s also a little more road and tyre noise than you’d hope, which detracts from comfort on longer trips. It’s far from bad, but the Audi A4 is a quieter place to be at motorway speeds.