25 MPG combined isn’t going to set any fuel economy records, but for the 2018 Jaguar XE AWD with the strong 296-horsepower 2.0L turbocharged four-cylinder, it’s an acceptable compromise. This XE isn’t bought by penny-pinchers seeking maximum mileage; it’s for those who prioritize spirited driving dynamics and distinctive British styling and are willing to accept mid-pack fuel economy to get it. The all-wheel drive system adds further capability and security, further dampening any expectation of Prius-like numbers.

City and highway performance

The EPA estimates for the 2018 Jaguar XE AWD reflect its real-world performance. The city rating is 22 MPG, respectable given the engine’s eagerness to rev and the temptation to exploit its turbocharger. Highway driving allows the XE to stretch its legs, achieving a more palatable 30 MPG. The eight-speed automatic transmission, a ZF unit known for its smooth shifts and responsiveness, contributes to both figures, keeping the engine in its sweet spot whether navigating urban congestion or cruising at speed. These numbers are suitable for this class of cars.

Annual fuel cost

The EPA calculates the annual fuel cost for the 2018 Jaguar XE AWD at $2,300. This figure is based on driving 15,000 miles per year, using a blend of city and highway driving, and factoring in national average fuel prices. It’s a worthwhile point of consideration, as it gives potential buyers a realistic perspective on the long-term costs associated with owning a performance-oriented, all-wheel-drive luxury sedan.

Real-world expectations

While the EPA provides a standardized benchmark, real-world fuel economy can vary significantly depending on driving habits and conditions. Aggressive acceleration, frequent short trips, and sustained high-speed cruising will all negatively impact fuel economy. Conversely, a more conservative driving style, coupled with longer highway stretches, can potentially improve upon the EPA estimates. Someone who enjoys the XE’s performance capabilities and AWD grip will likely see figures closer to the 22 MPG city figure.

How it compares

The 2018 Jaguar XE AWD finds itself in a competitive segment. The fuel economy figures are not stellar compared to others. A similarly equipped BMW 330i xDrive, for example, boasts a combined rating of 27 MPG. The Mercedes-Benz C300 4MATIC achieves a comparable 25 MPG combined. The Audi A4 Quattro manages 27 MPG combined. These slight differences might not sway a committed Jaguar enthusiast, but they are relevant for buyers prioritizing fuel efficiency within the class. Buyers should also compare all Jaguar fuel economy data to see how this compares to other models.

Tips to maximize efficiency

Use the XE’s “Eco” driving mode, when its muted response does not become frustrating. This mode optimizes engine and transmission settings for fuel conservation, encouraging gentler acceleration and earlier upshifts. It’s most effective in stop-and-go traffic, where minimizing wasted energy yields the greatest benefits. Though it compromises the car’s personality, it can help noticeably over time.

Ensure that tires are properly inflated to the recommended pressure, found on a sticker inside the driver’s side door. Underinflated tires increase rolling resistance, forcing the engine to work harder and consume more fuel. Regularly checking and adjusting tire pressure is a simple but effective way to improve gas mileage.

Avoid unnecessary idling. Modern engines consume a surprising amount of fuel at idle, particularly when cold. Turn off the engine if you anticipate waiting for more than a brief moment. The XE’s engine stop/start helps with this, but can be annoying when trying to launch into traffic, so be conscious of how it functions.

Maintain a smooth and consistent driving style. Avoid sudden acceleration and hard braking, as these actions negatively impact fuel economy. Anticipate traffic flow and maintain a steady speed whenever possible. The XE is much more fun when driven hard, of course, but restraint will pay off at the pump.

Consider exploring other XE trims. The rear-wheel-drive version of the XE, or models with less powerful engines or lighter curb weights, can deliver noticeably improved fuel economy compared to the AWD 296-horsepower variant. Review XE MPG across all years to see the varying levels of performance.