Let’s face it, industry awards are all about back slapping and self preservation. There are so many prizes given out in the annual What Car? awards that seemingly no car manufacturer walks away empty handed.

This year’s ceremony at London’s plush Grosvenor House Hotel was no exception and yet that should not detract from Jaguar’s achievement. It was up against some of the toughest rivals in the market, including Audi, BMW and Lexus, and it won fair and square. In terms of quality, performance, handling and comfort, the XF is an impressive piece of design and engineering. It’s a car whose performance is on par with its looks and if you’ve seen one you’ll know that's high praise indeed.

There are hints of past Jaguars in the car's lines which will help Jaguar’s quest to revive the 1960s glamour of Carnaby Street and Mary Quant when Jags were undeniably the best sports cars in the world. George Best drove an E-type and it was his love for the car that prompted his remark: "I spent a lot of money on booze, birds and fast cars. The rest I just squandered."

The range of engines in the XF includes a supercharged 410bhp V8 and naturally aspirated 294bhp V8. There will be a turbodiesel version that uses the Peugeot / Jaguar / Land Rover 2.7-litre V6, and next year there will be a more powerful diesel and a much anticipated XFR with a 5.0-litre engine and around 500bhp that promises even lustier performance.

Jaguar XF SV8

Video: watch Jay Leno put the spectacular new Jaguar XF through its paces

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Under its skin, the XF retains some of the old S-type's architecture, but with a stronger structure that uses more aluminium yet only weighs 15kg more. It’s roomier than its predecessor, even though tall people like Jeremy Clarkson may feel a little cramped in the back. Nice touches include a fine (optional) British-made stereo system from Bowers & Wilkins that sits amid a stylish and well-thought out cabin dominated by a swooping fascia and finished in neatly matched wood and aluminium.

So far so good, but how does the XF stand up against rivals? A V8 Premium Luxury XF carries a price tag of £45,500, compared with £45,745 for the BMW 550i SE. Both the XF and 550i use normally aspirated V8 engines, but the BMW’s uses a 4.8 litre unit compared to a 4.2 litre workhorse in the Jag. Not surprising, then, that the BMW delivers more power (362bhp v 294bhp). Jaguar quotes a 0 to 62mph time of 6.5secs while BMW claims 5.3secs (both cars with automatic transmission). Yet it is the BMW that uses less fuel on all quoted cycles and emits less CO2 as well. On paper then, the BMW triumphs.

But that’s not the whole story, and until you drive one, it is frankly hard to explain why. The Jaguar feels more foot sure than the BMW, by which I mean that even with all the electronic aids turned off you could still rely on this car to see you through the tightest curve on a loose or slippery surface. Its handling has poise and its throttle response has the urgency and of something that wants to be let off the leash.

The XF is a worthy winner of the Car of the Year and that’s good news for a company that has suffered more than its fair share of financial misfortune. Okay, so strictly speaking it’s no longer British, and its American parent may soon pass it on to an Indian industrial conglomerate. But the XF is a descendent of the Mk2 saloon of 1959, beloved of bank robbers, Morse and an entire generation of car enthusiasts, and that alone makes it a very special car.

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