The all-wheel drive system, which will be available initially with the 178bhp 2.0-litre Ingenium diesel engine, is capable of sending torque to the front wheels on demand, making the XE "a true all-weather sports saloon,” according to Jaguar.
The same system - which uses a transfer case with a multi-plate wet clutch and a chain drive to the front propshaft - is already in use on the XF and will also feature on the upcoming F-Pace SUV. The system is only available on XEs equipped with Jaguar's eight-speed automatic transmission.
The new AWD system works with Jaguar's Intelligent Driving Dynamics software. First seen on the F-Type AWD last year, the system can use data from the XE's sensors to continuously change the axles it sends torque to.
All-wheel-drive versions of the XE also get the option of Adaptive Surface Response (AdSR), which replaces the current Rain, Ice and Snow driving modes. The AdSR system works at any speed, automatically adjusting the throttle, transmission and stability control systems to suit surface conditions. Drivers can also tailor the car's throttle response, transmission and adaptive dynamics systems with Jaguar's Configurable Dynamics.
Meanwhile, there's a new, larger infotainment system, dubbed InControl Touch Pro. The system, which replaces the standard 8.0in touchscreen interface with a larger 10.2in display, is already available on the larger Jaguar XF. It features sharper graphics and more functionality than the standard InControl system.
The InControl Touch Pro system uses a 60gb solid-state drive for storage and features a customisable home screen, multi-windowed display modes and a dead-reckoning system that uses the car's location and heading to determine navigation data even when the GPS signal is lost. The system also functions as a wi-fi hotspot, allowing up to eight devices to be connected at any time.
Other new features include an adaptive speed limiter that can increase or decrease the speed of the car automatically depending on the speed limit, while a new Lane Keeping Assist feature provides minor adjustments to the car's steering to keep it in lane. A driver monitoring function is also new.
Jaguar has also revealed an app for the Apple Watch, allowing owners to check their car's fuel level, location and climate control settings remotely, as well as remote starting the engine.
The MY2016 Jaguar XE is available to order now, with first deliveries planned for early next year. Prices start at £26,990.