[5] The X-Type, codenamed X400,[6] launched in 2001 to compete in the compact executive class dominated by the rear-wheel drive BMW 3 Series and Mercedes-Benz C-Class, despite Ford/Jaguar having no directly competitive platform.

If equipped, the electronic Dynamic Stability Control System could still reduce individual wheel spin via braking and/or decreasing engine torque.

[4] Although in the end just 19% of the cars origins were shared, much of which were perfectly suited components such as HVAC units hidden from view and which in no way detracted from the X400's Jaguar heritage.

[5][9][10] Both saloon and estate configurations were manufactured at the Halewood Assembly Facility near Liverpool,[5] renovated at a cost of $450 million.

The X-Type's petrol engine is also set apart by the use of SFI fuel injection, four valves per cylinder and featured fracture split forged powder metal connecting rods, plus a one piece cast camshaft, and has direct acting mechanical bucket (DAMB) tappets.

In 2003, the X-Type was also offered in front-wheel drive with the introduction of Jaguar's first four-cylinder diesel engines (based on the Ford Duratorq ZSD unit from the Mondeo and Transit), and with the smaller 2.1 litre petrol V6.

[4] The estate adds a 320-watt premium Alpine sound system, wood-and-leather steering wheel, 10-way power adjustable seats for driver and front-seat passenger, electrochromic mirrors inside and out, rain-sensing windshield wipers, a programmable garage-door opener, message centre and trip computer, Reverse Park Control, and 17-inch alloy wheels.

From its saloon counterpart, the design revised 420 tooled parts and 58 stampings for all components rearward of the windscreen, adding 150-pounds.

[14] The facelift featured revised front and rear fascias, new door mirrors with integrated turn indicator repeaters, the choice of a 2.2 litre diesel with particulate filter, and a new six speed automatic transmission with Jaguar Sequential Shift.

Initially, the X-Type was only available with six cylinder petrol engines, coupled to an all-wheel drive system,[28] resulting in poor fuel economy, while its key German rivals, the BMW 3 Series, Audi A4, and Mercedes C-Class were sold predominantly in two wheel drive form, with four cylinder petrol or diesel engines, a critical offering in the economy conscious European market.

In two episodes, he demonstrated its capabilities in the snow, declaring that it "laughs in the face of the weatherman, the police and the AA, with their advice to stay at home".

"[33] Noted automotive designer Robert Cumberford called the X-Type's styling "an unimaginable pastiche of many past Jaguars" in the June 2001 issue of Car and Driver magazine.

[34] The Jaguar X-Type won AutoWeek's Editors Choice Award as the Most Significant Car at the Geneva Motor Show of 2001.

[50][51] In January 2011, Jaguar said plans for successor for the X-Type were under consideration, to compete with models such as the BMW 3 Series, and to be positioned below the current XF.