The 2017 Jaguar XE is an all-new model from the previous 2016 Jaguar XE. The 2017 Jaguar XE comes standard with an eight-speed automatic transmission and one of three engines. The XE 25t employs a turbocharged 2.0-liter four-cylinder (240 horsepower, 251 pound-feet of torque), while the XE 20d gets a turbodiesel 2.0-liter four-cylinder (180 hp, 318 lb-ft) and the XE 35t steps up to a supercharged 3.0-liter V6 (340 hp, 332 lb-ft).
Rear-wheel drive (RWD) is standard, and all-wheel drive (AWD) is offered on the XE 20d and XE 35t. Jaguar's AWD system is performance-oriented, operating mostly in rear-wheel-drive mode unless traction dictates that power be sent forward.