The purchase of Jaguar and Land Rover by Indian firm Tata Holdings in 2009 for £2.3 billion caused quite a stir.

How on earth would such a prestigious English brand thrive under such ownership?

But it seems they needn’t have worried. Jaguar is in good health and, if my latest experience is anything to go buy, their cars are enjoying a new lease of life.

As well as the XF (replacement for the S-Type) and the full-size XJ saloon, tested here is the XK grand tourer, the latest sports model which can trace lineage back to the E-Type and XK120.

This XK is everything you would expect from Jaguar. Sporty, yet refined, it appeals to younger drivers who might otherwise be lured by Porsche. There’s a definite youthful feel to it.

The quality is still there, from chrome switches to sumptuous seats. It’s hard to fault. I’m a traditionalist when it comes to cars, and prefer proper handbrakes and gear levers, but if any model could persuade me to go for new-fangled styles, then this it.

The handbrake is a switch rather than a lever, yet is far more user-friendly than some I’ve used on lesser marques. These switches tend to be on exotic cars and are designed for the American market, but they are spreading far and wide these days.

The gear lever is a dial that rises out of the fascia when the ignition is fired and you switch it from P (park) to D (drive), N (neutral) or R (reverse). It’s very neat and works well.

This is a move away from the traditional ‘J-gate’ gear selector to the Jaguar Drive Selector (what this dial is called). The console is cleaner, neater and more youthful... less ‘gentleman’s club’.

The XK gains a new 5.0-litre petrol V8 engine in place of the familiar 4.2-litre V8 unit. It sounds big – too big, in fact – but feels lithe and smooth.

On paper, the figures are impressive: zero to 60mph is a rapid 5.2 seconds, and power is up from 300 to an impressive 385 horsepower, while top speed remains limited to 155mph.

More impressive has been maintaining fuel consumption and emissions at sensible levels. At 25.2mpg on the combined cycle, the new engine is only a fifth less frugal than the 4.2 V8. Yet CO2 has been reduced to 264g/km from 269g/km.

In typical Jaguar fashion, the hike in performance is signalled by modest exterior changes. There’s more chrome detailing at the front plus a redesigned bumper. This XK also has shapely new mirrors, complete with built-in LED repeaters.

The rear bumper and tailgate have been refreshed, while the exhaust has been tweaked cosmetically and tuned to deliver a more distinctive sound.

A selection of new trim material have been introduced, the main instruments are new backlit in white not green, new heated and cooled seats are available along with a DAB radio option and powerful audio system boasting MP3 player, iPod and Bluetooth phone connectivity.

The various cosmetic changes add a more contemporary feel to the XK.

The final mention must go to the old XK’s much maligned radio aerial; no longer a blot on the rear wing, but made invisible thanks to the wonders of modern technology.

Hijacking the current marketing tagline for a moment, this is very much a new Jaguar. The V8 engine alone is a significant step forward. The various improvements to the car’s handling and ride combine to make the coupe surprisingly potent. Of note is the switch from the old CATS suspension system to a new Adaptive Dynamics set-up.

For many traditional buyers the XK will always be viewed as a brisk grand tourer. It’s a role the car is still more than capable of. From the velvety smooth ride – even when fitted with huge 20in wheels – to the slurred shifts of the all-new six-speed auto gearbox and hushed business class cabin ambience, nothing else comes close for the money.

The new suspension does a fine job of maintaining a balance regardless of road conditions, and the automatic gearbox can be left to its own devices – manual control is via steering wheel-mounted paddles. Again, shifts are seamless regardless of operating mode. A dynamic setting moves the whole experience up a notch if you fancy a sportier feel. In truth, you have to be more discerning than I to appreciate much difference.

And the engine? The raw performance from the new 5.0-litre V8 is stunning. The pace is ballistic; any gear, any speed. Yet it’s not the manic delivery you get from some rivals, where you feel holding on tight is your only option. In the XK, it’s just an endless torrent of power, wrapped in a smooth, creamy coating.

Well, it would be if it wasn’t for the car’s exhaust note. This XK can bark and growl with the best of them when you’re pushing on. It’s a car which appeals to young guns without alienating traditional Jaguar types.

Jaguar XK Coupe:- PRICE: £67,500.

ENGINE: 5.0 litre V8 engine generating 385ps via rear-wheel-drive and six-speed automatic gearbox.

PERFORMANCE: Top speed 155mph, 0-60mph in 5.2 sec.

COSTS: average 25.2mpg.

EMISSIONS: 264g/km.

INSURANCE: Group 20E (47E in the 1-50 ratings).

WARRANTY: three years unlimited mileage.

Steve’s ratings: Performamce: 4/5 Economy: 2/5 Ride/handling: 4/5 Space/practicality: 3/5 Equipment: 4/5 Security/safety: 4/5 Value for money: 3/5 OVERALL: 3/5