What’s this new cat in town, then?

After a half-decade absence in the 3 Series/C-Class segment, Jaguar is clawing its way back into the compact sedan class with the clean-sheet XE. This $104,200 XE S is the range-topper (for now) designed to challenge the Audi S4 … but not the BMW 335i.

Hang on, not the BMW 335i? Jaguar reckons the $12K-cheaper 335i is a bit too luxury-sports to be considered a competitor, where the $105,000 S4 puts greater emphasis on sports-luxury.

The XE S is pleasant inside but lacks space and differentiation compared with a $65K XE R-Sport diesel, which isn’t helped by kit that remains optional (heated seats, head-up display, digital radio).

Jaguar XE S 4

There are a couple of caveats, though… The XE S doesn’t get the option of a booming exhaust like the F-Type does, and extra sound deadening makes the V6 feel more like a scotch sipper than vodka swigger.

It’s fast through the mid-range but not electric off the line – blame the 1665kg kerb weight, which is 155kg heavier than a 335i. Jag says the weight owes to a double wishbone suspension design claimed to deliver class-leading dynamics.

Has it paid off in the dynamics? Yes. The electro-mechanical steering crisply guides a front-end that challenges a 3 Series for sharpness, yet the way the XE S can rapidly change direction indicates a level of composure beyond that rival.

Ride comfort is excellent in the softest of the two-stage adaptive damper settings, especially for a car wearing 19s (40-aspect front, 35-aspect rear). Switch to Dynamic and the shocks subtly tighten without becoming unruly, while the steering backs off the assistance slightly, again subtly.

Thanks to the linear throttle delivered by the supercharger and good grip from the 255mm-wide rears, the rear-drive XE S is enjoyably contained rather than lairy.

Jaguar XE S 3

3.5/5

Specs

Engine: 3.0-litre supercharged V6, DOHC, 24V Power: 250kW @ 6500rpm Torque: 450Nm @ 4500rpm Weight: 1665kg 0-100km/h: 5.1sec 0-100km/h (claimed) Top speed: 250km/h (limited) $104,200 Pluses: Lovely steering, ride and handling balance; blown V6’s mid-range Minuses: Muted V6 and exhaust compared with F-Type; cabin lacks differentiation and equipment for the price