Jaguar will take on the BMW M3 and the Mercedes-Benz C63 AMG with a high performance version of the XE, which will likely be dubbed the Jaguar XE SVR.
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According to Auto Express, the car will be powered by a version of the 5.0-litre supercharged V8 seen in the F-Type. For the Jaguar XE SVR, the engine will be tuned to deliver 365kW of power and will be tied to an eight-speed automatic transmission.

If the British publication is correct, that would make the XE SVR more powerful than the 317kW/550Nm BMW M3 that's powered by a twin-turbocharged 3.0-litre straight six. A new version of the Mercedes-Benz C63 AMG is still under development, but reports indicate that it will be motivated by a twin-turbocharged 4.0-litre V8 with between 336kW and 373kW of power.

With its supercharged V8, the XE SVR is said to be able to complete the 0-100km/h dash in less than 4.0 seconds, as well as hit an electronically limited top speed of 250km/h.

To make the most of the car's fiery heart, the XE SVR will be fitted with lower, stiffer suspension, an electronically controlled limited-slip rear differential and larger, high performance brakes. The XE SVR will easily spotted thanks to its flared wheel arches, aggressive front bumper, rear diffuser, quad exhaust pipes and unique grille treatment.

As with the Range Rover Sport SVR, the new XE SVR will be developed by the recently created Special Vehicle Operations division of Jaguar Land Rover.