• Our test car might be the mid-range R-Sport costing £32,325, but the standard kit list is pretty good and has power-adjusted, heated and leather-trimmed seats, Bluetooth, Bi-Xenon headlights, cruise control, dual-zone climate control and the latest eight-inch touch-screen infotainment system with DAB radio and sat-nav.
• That touch-screen system is a big step forward over the previous system, the sat-nav in particular has clearer mapping and is easier to navigate.

What’s not?

• Space in the front of the XE is fine, but rear and boot space is tight. Two six-footers will struggle to get comfortable on long journeys – although despite the curvy roof, headroom is surprisingly good however. The 450-litre boot is smaller than the 3-Series though.
• The new 2.0-litre Ingenium diesel is a strong performer, it’s just a shame it’s not more refined. At its worst from cold and lower speeds, too much diesel noise and vibrations make it into the XE’s cabin for our liking.

The Verdict

Jaguar has needed a compact executive rival for a while and the XE doesn’t disappoint. Not quite as accomplished as the BMW 3-Series, but the XE is still good to drive, with willing performance and an interior luxurious enough to justify the leaping cat badge.

However, the fitment of the latest Ingenium diesel engine has brought efficiency and emissions to levels never seen before by the iconic British manufacturer.

But how does it compare to key rival – the BMW? Closest model to this 2.0 i4 163 R-Sport, is the 187bhp 320d in Luxury trim. The BMW gets off to a good start being cheaper by over £1,000, the BMW is also much more powerful.

However, for an SME the emissions and tax band are going to be key and this where the Jaguar makes more sense with 99g/km and a 17% charge versus the BMW’s worse 21% charge and 116g/km emissions.

Jaguar 2.0 i4 163 R-Sport review

The Low Down…..

…..and what it costs