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It didn’t go that well last time Jaguar tried it.

There wasn’t, and isn’t, a lot wrong with the X-Type, but it was intended to blast Jaguar into the big league and get production numbers up to figures that would make healthy profits.

Trouble is, if you’re trying to divert people away from BMW showrooms and make them buy a Jag instead of a 3-Series, you need a more impressive carrot than a car that has 1960s styling and is based on a Ford Mondeo.

Enter the second attempt, the new XE. We’ve almost written a book on this car because Jaguar has spun out the launch over what seems years, but now we’ve driven it.

To recap, the XE is completely new and has a body and chassis that’s made from a high proportion of aluminium (over 75%), which makes it light and unique in its class.

It also has rear wheel drive – unlike the X-Type which started life as 4wd – with a choice of engines and gearboxes. Now, if we were being sensible we’d drive the 2.0-litre diesel XE because that’s the model that Jaguar will sell most of, but since we’ve waited a long time for this car we’re going to be self indulgent and drive a rather more exciting one.

Jaguar will obviously make a hot AMG/M3 beater and has already told us that its supercharged 5.0-litre V8 slips nicely under the XE’s bonnet, but for now the hottest version is the XE S.

So that’s the one we’re driving today.

It uses the supercharged 3.0-litre V6 from the entry-level F-Type and that means 340bhp. We’ll start on the XE’s styling. This area is very much a personal thing. The front looks distinctive and definitely Jaguar, the back a little more non-descript but it does have tail lamps that ape the ones on the F-Type.

Whatever your thoughts, you couldn’t accuse the XE of being either ugly or retro.

The inside is well up to rivals’ quality and has what Jag design chief Ian Callum refers to as the “Riva curve” – the swooping line on top of the dashboard which is like a Riva speedboat’s windscreen (Google Riva: sexiest powerboat ever made).

The XE S only comes with Jaguar’s eight-speed automatic gearbox, the centre console contains the familiar round

knob from the XF saloon that selects

the gears.

The F-Type sports car famously makes a spectacular noise when you fire it up. So does the XE’s engine.

There are no clever flaps that open or close. It just sounds lovely all the time. So, are you ready? Engage drive.

A full blown performance XE is going to be quite something because this car does not hang about.

Jaguar quotes 0-62mph in 5.1sec which is not hanging about.

But back to the real world, what you’re going to really like about this car is its handling and the balance of its ability to barrel around a corner at high speed and be comfortable at the same time.

The XE is also the first Jaguar saloon to be fitted with electric power steering and it’s exceptionally good especially when you set the controls to Dynamic mode. Best plan is to always have it in this.

You can order your XE with one of three suspension set-ups: Comfort, Sport and, lastly, an optional £800 adaptive system.

Our car has the latter and it’s money well spent.

So how does the XE S compare with a BMW 3-Series? Fantastically well. Jaguar has hit the centre of the board this time. The XE tackles corners with little or no understeer and not much body roll. It’s a true sports saloon.

We’ve driven the 2.0-litre diesel with its new Ingenium engine and it’s good.

We’ll feature it in one of our mini tests in the next few weeks, and when we do we’ll tackle bits of the XE like cup holders that we were a bit too excited to mention in this test.

The facts

Engine: 3.0-litre V6, 340bhp 0-62mph: 5.1sec

Fuel consumption: 34.9mpg

£44,865

The rivals

Audi S4

Has 4wd and 328bhp, but is way short of the new Jaguar when it comes to driving excitement.

£39,310

Mercedes-Benz C450

We don’t have a price for it yet, but this 4wd hot Merc has 367bhp and is a gem.

£tba

BMW 335i M Sport

The class captain of the sports saloon class. But now it has a serious rival.

£38,260