The Jaguar X-Type sedan with only minimal changes for its second year of production. The price of the entry-level 2.5L model comes down a bit, to attract more potential buyers, and the the upper level 3.0L is further distinguished by exclusive standard features like 17-inch wheels and a CD sound system. Both models now come standard with electro-chromatic mirrors.

In 2003, the X-Type continued as Jaguar's only AWD car, and was also the only model offered with a manual transmission. Two trim levels are available, but each can be enhanced with costly options packages. Both the base 2.5L and the upper level 3.0L come standard with many of the luxury items one would expect from Jaguar, including wood trim, leather upholstery, automatic climate control, keyless entry and steering wheel audio controls. Safety features include ABS, traction control, side airbags and all-wheel drive.

The base engine is a 2.5 liter V-6, making 191 horsepower and 180 pound-feet of torque. This sedan runs from 0 to 60 in 7.9 seconds, and earns an EPA rating of 19/28 mpg. The more potent power plant is a 3.0 liter V-6, good for 227 horsepower and 209 pound-feet of torque. Fuel economy is estimated at 18/25 mpg, and 0 to 60 can be achieved in about seven seconds. A five-speed manual transmission comes standard with with the 2.5 liter engine, and the 3.0 liter V-6 is paired a five-speed automatic. The manual is a no-cost option with the larger engine.

The X-Type set apart from other Jags by exclusive features like AWD, a manual transmission, and the sub-$30,000 price. That number becomes a distant memory once options are added however. Jaguar has aimed for a younger audience with this new model, and the response has been quite positive. Unfortunately, the engineering cannot match the prestigious XJ-inspired styling, and the X-Type has received abundant criticism for the inclusion of various Ford components. The X-Type offers a safe and sporty ride, but reviewers concur that it cannot match the refinement of the more expensive Jaguar models.