The X-Type continues as jaguar's entry-level car for 2006. This compact executive car was introduced in 2001, and was aimed to attract more potential buyers to the Jaguar lot. The X-Type is styled similarly to the classic XJ sedan, but it can be had for just more than half the price of the flagship.

There are two models available for this model year: the 3.0L Sedan and 3.0L Sportwagon. The smaller 2.5 liter engine has been dropped, along with the manual transmission. The grille and wheels designs have also been revised.

The both models are equipped with what Jag owners would expect. Standard features include leather seating, wood trim, full power accessories, a power driver's seat, and automatic climate control. The Sportwagon costs a bit more than the sedan, and adds a moon roof. The sedan has 16-inch wheels, and the wagon wears seventeens. Bluetooth connectivity and Sirius are new options this year. Other upgrades include the Sport Package (stiffer suspension, 17-inch wheels, HID headlights) and the VDP Edition (premium Alpine audio upgrade, seat piping, heated seats, rain-sensing wipers). A navigation system is also available.

The 3.0 liter V-6 delivers 227 horsepower and 206 pound-feet of torque, and is teamed with a five speed automatic transmission. Both models are full time all-wheel drive.