2017 Jaguar XE Challenges the Sports Sedan Establishment

It’s been more than a decade since Jaguar has had a competitor against the Teutonic trinity of compact sports sedans: the Audi A4, BMW 3 Series, and Mercedes-Benz C-Class. And its last effort was the best-left-forgotten X-Type, a chintzy repackaging of a Euro-market Ford sedan. But now, the claws are out and Jaguar is back with a serious contender.

Built using an all-new modular architecture, the XE shares its structure with an upcoming Jaguar compact SUV, the F-Pace. Both of these models aim to extend Jaguar’s reach into larger market segments and more youthful customers.

To gain early impressions of this new feline, we rented a non-U.S. spec car from Jaguar. Prices start at $34,900 and go up to $49,200 before options, more or less matching alternatives from BMW and Mercedes.

Jaguar is known for building stunning cars that stand out from the crowd. But the 2017 Jaguar XE falls short, blending in a bit too much. There is some family resemblance to the ferocious F-Type sports car in its headlights and grille, but the rest looks rather ordinary.

Same goes for the generic-looking interior. You sit down low as the rather dark and somber cabin engulfs you, especially in all black. Nothing seems particularly plush nor premium. Compared to the interior of the Mercedes-Benz C-Class, whose generous wood and chrome grant a sense of occasion inside, the 2017 Jaguar XE interior just gets the job done. Given its brand heritage and the not-insignificant price, one would expect a new Jaguar to be a bit more fetching, inside and out.

See our luxury car buying guide and ratings.

The front seats are comfortable, but it's really tight for back seat passengers. Your friends will probably choose to ride with whoever owns the 3 Series in the crowd. Getting in and out of the low-slung car might require some flexibility.