Jaguar may be in no rush to bring diesel variants to the United States for anything more than a cross-country demo run. But overseas the marque's oil-burning selection keeps growing. The XF is already available in its home market with a 190-horsepower 2.2-liter diesel four, not to mention a 3.0-liter diesel V6 with 240 or 275 horsepower. But if those weren't frugal enough, Jaguar has now introduced an even more cost-effective alternative.

The same 2.2-liter diesel four can now be had in a cheaper 163-horsepower trim for a grand less, at £29,950 on-the-road price (OTR, inclusive of the 20% Value Added Tax). Considering, however, that – at 9.8 seconds – the new version takes more than a second longer to reach 62 mph from a standstill (compared to the 190hp's 8.5-second run), yet returns the same 52.3 mpg combined rating on the UK scale, we're not sure the cheaper price makes this a good value.

What the new diesel spec does offer, however, is an intriguing id to the XFR's ego: Compared to the top-of-the-line supercharged model's £65,350 OTR price, 22.5 mpg UK combined rating and 4.9 second sprint to 62, the bottom of the range is now less than half the price off the top, gets more than twice the fuel economy, and takes twice as long to reach highway speeds. Follow the jump for the full press release.
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A new 163 PS version of the popular and highly efficient XF powered by a 2.2-litre, four-cylinder diesel engine, is set to be launched aimed at delivering greater value than ever before.

Drawing on the strengths of the existing 190PS model, an example of which recently crossed the United States averaging 62.9 mpg, the new, lower output derivative of the 2.2-litre engine will mean the XF range now starts at £29,950 OTR.

Despite the lower starting price the new model features an extensive range of standard equipment including suedecloth and leather seats, a touch screen centrally mounted display, electronic climate control and an advanced 8-speed gearbox complete with automatic Stop-Start.

The XF 2.2D 163 PS is capable of accelerating from a standstill to 62mph in 9.8 seconds before reaching a maximum speed of 130 mph. On the combined cycle it can achieve 52.3 mpg and it emits 149 g/km of CO2.

Jaguar dealers are taking orders for the new car now ahead of the first deliveries taking place in March.

The XF continues to enjoy a strong following in the UK having won over 80 awards since it was launched in 2008. Since then it's been subject to a relentless programme of engineering and aesthetic enhancements. The 12MY XF is the most efficient and best equipped iteration yet with diverse range encompassing the highly efficient new 163 PS 2.2-litre Diesel model, up to the performance-focussed XFR, equipped with a supercharged 5.0-litre V8 engine producing a mighty 510 PS.

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