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It is a remarkable decision for the English luxury brand with a reputation for high-performance petrol sedan and seductive sports cars. But then diesel fuel quality and diesel engine technology have improved considerably.

So refined is the state-of-the-art twin turbocharged 2.7-litre V6 diesel engine from Jaguar that it belongs in the luxury S-TYPE sedan.

The engine is best described for what it isn't – it isn't noisy and doesn't eject large clouds of black sooty smoke. In fact, its performance and NVH qualities are very petrol-like.

"This is an impressive engine, and matched with the S-TYPE's chassis control, it is an excellent luxury sedan that's very comfortable to drive. The critical issue for Jaguar will be getting Australians to forget about those old diesel ideas of black smoke, noisy engines and poor performance.

"Drive the S-TYPE Diesel, and you will be impressed," said David Blackhall, General Manager Jaguar Australia.

This twin-turbocharged V6 developed by Jaguar produces desirable qualities such as 435Nm at 1900rpm and respectable acceleration, by any measure, of 0-100km/h in 8.6 seconds.

A six-speed automatic is geared perfectly to accompany the low-rev torque generated by the diesel engine that revs comfortably beyond 4000rpm.

As expected, the S-TYPE Diesel posts frugal fuel consumption of 6.1L/100km highway and 10.9L/100km urban. Jaguar Australia claims an ADR 00/81 fuel consumption figure of 7.8L/100km. This relates to a very low greenhouse CO2 output of 208g/km.

S-TYPE Diesel is expected in showrooms in April at a confirmed price of $101,490 with six-speed automatic. A manual gearbox will not be offered.

The S-TYPE Diesel shares standard feature specification with the S-TYPE 3.0 V6 Luxury.

S-TYPE Diesel Features:
18-inch Alloy Wheels
Front and Rear Park Sensors
Bluetooth
Rain Sensing Wipers
Satellite Navigation
10-way Power Adjustable Driver's Seat
8-way Power Adjustable Passenger Seat
Leather Upholstery
Metallic Paint
Jaguar Alpine Sound System with 6-stacker CD

"The original business case is based on quite conservative S-TYPE Diesel volume per year, and with recent increases in consumer interest, I'm confident we'll achieve those targets," said Blackhall.

The engine’s specifications make for impressive reading. The four-cam, 24-valve, twin-turbo V6 features the second generation common-rail direct injection and super-fast piezo-electric injector operation.

Maximum power from the 2.7-litre engine is 153kW. Torque peaks at a heady 435Nm, which is actually higher than that of the S-TYPE’s naturally aspirated 4.2-litre V8 petrol engine; yet the diesel V6 has 47 percent better fuel consumption. More crucially still, 80 percent of this torque is available from just 1500rpm all the way through to 4000rpm.

This combination of substantial power and torque gives the new S-TYPE Diesel huge mid-range flexibility and refinement. True to Jaguar tradition, it is relaxed when cruising, yet pleasingly rapid cross-country.

The diesel market in Europe has experienced consistent and significant growth during the past decade, and in recent years demand has increased dramatically in the premium market. Diesel now accounts for 40 percent of sales across the premium segment in Europe.