When Jaguar introduced its award-winning XF it didn’t really have small engines in mind.

But the car has proved so popular and fuel prices increased so much it made sense to offer the stylish Jaguar with a four-cylinder, 2.2-litre diesel to broaden the appeal of the car.

Having only driven the XF with large petrol and diesel engines under the bonnet I was a little sceptical about how satisfying the small engine version would be. I need not have worried, however. Jaguar has really done its homework with this one.

Despite being only 163bhp – small by Jaguar standards – the power plant produces lively, responsive performance and packs a punch when you need it. A lot of the driver satisfaction the car delivers is down to the brilliant eight-speed gearbox, which offers supreme flexibility.

The gearing means the rev counter is only reading 1500 revs at 70mph and barely 2000 revs at 90mph, which means high-speed motorway journeys can be made in a very relaxed manner helped by the car’s excellent sound proofing. The XF is a large car, however, and while the small diesel engine is good on performance it struggles to achieve the fuel consumption Jaguar claims for it. That said, over a week with the car I averaged a very respectable 43 mpg.

Despite its ‘budget’ price – at least for a Jaguar – this car has all the attributes of the more expensive models in the XF range, including exemplary handling and road holding and excellent ride quality, which is up there with the best.

As with all XF models there’s an abundance of leg room all round, with rear seat passengers able to stretch out in comfort. The same generous space applies in the boot. Holiday luggage for an entire family is swallowed up with ease.

And for those who enjoy their music, on board the latest XF is available with the Meridian sound system which replaces the Bowes and Wilkins one.

Jaguar likes to look after its customers and my Luxury-spec test car had a number of little features which, while certainly not essential, make a car easy to live with.

In this instance it included keyless entry and ignition – the door unlocks when you touch the outside handle if you have the keys in your pocket – a self-closing boot and, one of my favourites, a heated steering wheel – not to mention heated front seats.

On the move the Jaguar automatic gearbox zips through the eight-speed selection rapidly so the revs and fuel consumption are kept to a minimum.

If you want more rapid performance, however, you can turn the rotary gearshift from Drive to Sport or simply change gear manually using the paddles behind the steering wheel. Either way this torquey engine gives excellent mid-range performance.

The 2.2-litre diesel is by far the most affordable in the XF range and puts this car into the price bracket of a lot more people – all of whom, I guarantee, will be delighted with their purchase.

Fast Facts

Jaguar XF Luxury

Price: £32,940

Mechanical: 2179cc, 4 cyl, 163bhp turbo-charged diesel engine driving rear wheels via 8spd automatic gearbox.

Max speed: 130 mph

0-60 mph: 9.8 secs

Combined mpg: 54.3

CO2 emissions: 139 g/km

Insurance group: 33

Warranty: 3 years unlimited mileage