WHEN Jaguar decided it was going to take on the German marques in the compact executive market they took all the know-how of the company's sporting heritage and mixed it up.

The result is the beautifully-crafted XE.

Jaguar designers decided they wanted to make a car that looked fast even when it was standing still and it would seem they have succeeded on all counts.

Starting from the large upright grille, the car makes a very big, bold statement and as you move from the athletic front shoulders with LED headlamps it's clear the XE is something a little bit special.

The rear haunches are borrowed from the stunning F-Type and the taillights help to portray a very wide stance from behind. It would be fair to say the Jaguar XE has a real presence on the road and the low roofline helps to deliver a sweeping coupe effect.

The interior is pure class with a simplistic, clutter-free layout that is very rich in technology. The wraparound dashboard and sculpted seats help to create a cockpit-style environment with everything neatly packaged and perfectly positioned. And the steering wheel and instrument binnacles are also very F-Type-esque in their appearance.

The car is feature-rich with class-leading and innovative technology with a clear and precise eight-inch colour touchscreen and access to all modern multi-media systems.

There is sat nav, Bluetooth, a pitch-perfect sound system with DAB radio and even an InControl Remote system that gives you access to the car's features from a smartphone. This can enable the owner to flash and beep the car when searching for it in crowded car park, lock the vehicle from a distance, download data for mileage purposes and call for assistance.

The interior is kitted out with the finest leathers and materials to create a truly premium feel and the comfort levels are sublime.

The XE is available with a range of petrol or diesel engines and in a variety of trims with the entry level model costing £26,995 and prices rising to £44,870. The spec levels are SE, Prestige, R-Sport, Portfolio and S with half the models focusing on luxury and the other half on sportiness.

We tried out a couple of models and the performance, driving dynamics and all-round impression was excellent.

First up was the XE Portfolio 2.0 180PS diesel model fitted with the company's all-new Ingenium powertrain.

This model was priced at £35,425 (£45,908 with options). It can sprint from 0-62mph in 7.4 seconds and onto a top speed of 140mph.

But the sit-up-and-take-notice stat is the fuel economy because according to official figures, this particular model can deliver combined efficiency of 67.3mpg with carbon emissions of 111g/km.

Obviously, the BMW 3 Series has set a very high benchmark when it comes to performance, but the XE certainly seems to match it.

The acceleration is smooth and blisteringly quick when needed and the ride is very comfortable with outstanding road-holding. And that means the XE can be thrown into tight bends with confidence.

The highly-efficient insulation drowns out any road surface or engine noise and even when being driven aggressively the XE seems to maintain a refined manner - one that Jaguar owners old and new will always appreciate.

The eight-speed automatic transmission is perfectly tuned and you can utilise the steering wheel-mounted paddle shifts to take extra control if you wish.

The cabin is nice and spacious with ample room in the back for two or three adults with good luggage space too.

Next up was the XE R-Sport 2.0 200PS petrol model priced from £29,740 (£41,530 with optional extras fitted).

This particular model has a 0-60mph sprint time of 7.3 seconds and tops out at 147mph. It can achieve 37.7mpg on a combined run with emissions of 179g/km.

Once again the XE was a delight to drive. This particular model was certainly more responsive and dynamic in its handling - it seemed a little edgier than the first car, but it still maintained its safe-as-houses characteristics.

And although it was great fun to drive the petrol derivative, it's clear to see why Jaguar predicts the vast majority of sales will come powered by diesel engines as they are so much more economical and offer huge financial savings to fleet buyers along the way.

But whatever XE model is chosen, one thing is guaranteed - a journey that will leave you grinning from ear to ear.

It's true the XE is taking on some very stiff opposition in the forms of the BMW 3 Series, Audi A4 and Mercedes C-Class, but Jaguar is certainly flying the flag and has laid down the gauntlet to the Germans with this fine piece of British craftsmanship powered by British-built engines.