According to the latest sales figures, the new engine for the executive saloon helped Jaguar boost September sales by 12 per cent to 10,896.
Of those Jaguar cars sold, a third were the new Jaguar XF, which received the new engine alongside tweaks to the front end and a refresh of interior materials.
Featuring fuel-saving technology such as Start-Stop, which turns the engine off in heavy traffic and instantly back on when the brake is released, to deliver fuel economy of 52.3mpg.
CO2 emissions are the lowest in the range at 149g/km, with money-saving implications for emissions-based road tax rates and, for businesses, Benefit-in-Kind rates.
For private drivers, this means £135 per year road tax but without a dip in performance. Top speed is 140mph and the saloon is capable of reaching 60mph in eight seconds.
The increase in Jaguar sales is down to the new, more frugal model, according to Phil Popham, Group Sales Director for Jaguar Land Rover.
It matches a similar rise in sales for sister brand Land Rover, which has been bolstered by the introduction of the new Range Rover Evoque. The Evoque, a compact SUV in three- and five-door variations, also uses the 2.2-litre diesel engine in its line up.
Popham said: “This month our sales have been further bolstered by the award winning Range Rover Evoque and the 2.2l diesel XF- both of which went on sale in September in the UK and Europe and will roll out across other markets in the coming months.”
The cheapest Jaguar XF costs £30,950 and comes with the new diesel engine in entry-level SE specification. The engine is also available in Luxury, Premium Luxury and range-topping Portfolio specifications.
Three other engines are available for the Jaguar XF ranging from a 3.0-litre V6 diesel to a 5.0-litre V8 petrol.