The Jaguar XE sports sedan has been updated for 2016 and will be available with the option of an all-wheel-drive system. The system will initially be offered on the model's eight-speed automatic transmission equipped, 178bhp 2.0-litre Ingenium diesel powered XE variants.

The AWD system adds 110kg to the XE’s weight and behaves as a rear-wheel-drive under normal driving conditions to conserve fuel, with its intelligent Driving Dynamics software sending torque to the front wheels only under low-traction conditions. All AWD versions of the XE receive an Adaptive Surface Response system that alters throttle and suspension settings depending on the road conditions.

Inside, the updated XE gets a new infotainment system known as the InControl Touch Pro. The system offers a larger 10.2-inch display, with 60GB of storage, Wi-Fi hotspot connectivity for up to eight devices and a dead-reckoning navigation system that works even when the GPS signal is lost. Driver aids on the updated XE include a lane-keeping assist and an adaptive speed limiter that alters the car’s speed based on the permitted speed limit.

Jaguar has also revealed an app for Apple Watch users, allowing owners to check their car's fuel level, location and climate control settings remotely, as well as remote starting the engine. The Jaguar XE is a direct rival to the BMW 3-series .