The 2017 Jaguar XE is a small luxury sedan offered in four main trim levels: base, Premium, Prestige and R-Sport. Each can be paired with multiple engines, denoted in the model name by 25t (gasoline four-cylinder), 20d (diesel four-cylinder) or 35t (gasoline six-cylinder). Specifically, the base XE comes in 25t or 20d specification, while the Premium and Prestige are offered with all three engines, and the R-Sport comes in 20d or 35t form. Note too that every XE with the 35t engine includes a sport-tuned suspension, which is also included with the XE 20d R-Sport (rear-wheel-drive only).

The 2017 Jaguar XE could easily win you over once you turn its rotary transmission selector to Drive. It's a car engineered for the driver who wants to feel the road through the steering wheel and the seat of the pants. While many cars, including the vaunted BMW 3 Series, have moved toward being more comfortable and isolating, the Jag XE doubles down on driving dynamics. The steering is exceptional, delivering consistent weighting and providing an impressive amount of feedback. You can feel what the car is doing.

Jaguar also knows how to tune a suspension, managing to maintain control around corners and feel perpetually composed yet still deliver a well-damped ride that soaks up bumps and never punishes you for its athleticism. This perception is even better when you choose the Advanced Dynamics Pack. Truthfully, you won't notice a big difference between its standard and Dynamic settings, but the adaptive suspension's ability to further improve upon ride comfort and handling is well worth the extra cost. Really, the XE could go up against the Cadillac ATS as the most engaging luxury sport sedan to drive right now.

Of course, the engine you select makes a difference. At this point we've only sampled the 35t's supercharged V6. Like Jag's supercharged V8s, the XE's 340-hp engine upgrade delivers silky smooth, effortless power that is pleasantly different in character compared with those offered by competitors. The fact that it gets the same EPA-estimated fuel economy as the base 2.0-liter turbocharged four-cylinder would certainly make us think long and hard about paying extra for the 35t. Of course, the presence of a diesel engine certainly makes the 20d the engine to get for those who prioritize fuel economy. If there is one disappointment from a powertrain perspective, it's the unrefined automatic stop-start system that draws too much attention to itself.

The 2017 Jaguar XE's cabin features an attractive, uncluttered dashboard with clean lines, but it lacks the sort of visual flair that made the original Jag XF and current XJ so special. Its quality also leaves a lot to be desired. Compared to what's in its German luxury sedan competitors, the door trim looks and feels a bit flimsy, the trim that wraps around the dash is unremarkable, and the dash top itself is shiny and a bit coarse. Our test car also had more squeaks and rattles than usual, and in general, the XE's cabin feels as if it belongs to a nice midsize family sedan rather than an entry-level luxury one.

Admittedly, opting for a non-black color scheme improves things as does opting for the range-topping R-Sport model that covers the dash in stitched simulated leather. It makes a difference. So too does the 10.2-inch InControl Pro touchscreen included in the Technology Pack. It has impressively quick processing speed, responds well to inputs, and its especially wide size makes it look modern and aids functionality. Some of its audio controls are a little tricky to figure out, but in general, the system works well. The same could be said of the base InControl touchscreen, but it's smaller, slower to respond and has less advanced graphics.

The 2017 XE's interior offers plenty of tech features, but its quality could be much better.

In keeping with the segment's sporty character, the 2017 XE feels snug and intimate from the driver seat. Controls fall readily at hand and the supportive driver seat should adjust enough to accommodate taller drivers. Unfortunately, such ample adjustment up front does take its toll on the backseat. The XE's Audi, BMW and Mercedes competitors all have more spacious rear accommodations. And although the 15.9-cubic-foot trunk would seem to be among the segment-best on paper, in practice it's a bit narrow and those of competitors are likely more useful.