With Tata's money, Callum's design skills and a whole load of confidence behind them, Jaguar is pitching its XE saloon as having what it takes to finally paw the segment's cream away from under the nose of BMW's 3 Series, perennially regarded as the most accomplished option, blending desirability with impressively engaging dynamics.

Jaguar's PR machine claiming that the XE "redefines the concept of the sports saloon" is hyperbole but the British firm's newest saloon is certainly aesthetically stirring, particularly in currently range-topping ‘S' guise with its sporty styling enhancements. Black Pack, fitted to the test car, additionally means a gloss black grille, side power vents and various other addenda, and the 20" Propeller alloy wheels look simply gorgeous. Some fabulous paints are available for the XE that show off the F-Type-derived lights at the coupé-like rear more distinctly than Italian Racing Red. It's a matter of taste but the Jaguar's adept balance of beauty and menace along with its charming Britishness in comparison to the Germans' relative dourness will immediately clinch it for some.

JLR's excellent rotary gear selector is present in the XE S's cabin, in which the much-improved infotainment system steals the limelight, its modernised menus and functions proving logical. With Apple CarPlay and Android Auto support along with Jaguar's InControl apps, the XE is a veritable techno-fest and audiophiles will be impressed by the sound reproduction from the 825W Meridian system. With torque vectoring, all surface progress control, a head-up display, blind spot monitor, lane departure warning and autonomous emergency braking, it's certainly safe.

The XE S's two-tone seats look special at a glance, although the leather feels slightly cheap, as do certain surfaces and controls, such as the indicator stalk. Front occupants will be perfectly comfortable but rear passengers will find shoulder and legroom tight, and the 3 Series and C-Class have larger boots than the Jaguar's 455 litres. Generally, though, the XE's cabin is well-executed, relatively luxurious and brimming with technology.

Handling having long been the 3 Series' forte, it would be an own goal if the hundreds of millions poured into the XE by Jaguar bore little fruit. Fortunately, the Midlands engineers deserve a pat on the back. The 340PS 3-litre V6 petrol engine from the F-Type is more than enough for the UK's camera-peppered, congested and potholed roads. Fitted with a smooth 8-speed ZF automatic gearbox, the Jaguar pounces in a smooth, linear fashion and hits 62mph in 4.9 seconds, fractionally faster than the BMW 340i M Sport. If only the F-Type's active sports exhaust featured on the options list to bestow a badly needed histrionic boost.

With standard adaptive dampers, communicative steering and excellent overall agility, zealous drivers seeking rear-wheel drive cornering thrills and on-demand tail-wagging will be impressed by the smile-inducing XE S. Fun but never a handful, the manageable Jaguar settles down into a docile motorway and urban cruiser.

The most expensive saloon in the class, XE S prices commence at £45,000, the test car costing £55,163. Business contract hire prices range from £400-700+VAT per month depending on the initial rental. It also loses in the CO2 and economy stakes, emitting 194g/km and returning 34.9mpg on paper, meaning high-20s in reality. Its mixed bag interior offset by tantalising styling, strong performance and addictive handling, there's nothing dour about the soulful Jaguar.