The XK8 was launched in 1996 to replace the XJS designed by then Jaguar design director Geoff Lawson. It was available in two body styles - a three-door hatchback coupé and two-door convertible with both variations featuring 2+2 seating. The car was the first in the Jaguar line-up to use Jaguar's newly developed 32-valve V8 engine - the AJ-V8 which had a displacement of 4.0 litres.
The XK8 was joined by a more powerful XKR in 1998. The XKR featured a supercharged variation of the V8 engine rated at 276 kW (375 PS; 370 hp). The engine was shared with the XJR but featured a new intercooler and a two-piece driveshaft. The supercharger was manufactured by Eaton and displaced at 2.0 litres. It generated 11.9 pounds of boost pressure to contribute to the higher power output. Visual differences from the XK8 included a rear spoiler, mesh front grille and hood louvres on the bonnet for improved airflow to the engine.
The XK8 came standard with 17-inch alloy wheels, while 18-inch (standard on the XKR), 19-inch, and 20-inch wheels were available for the XK8 and XKR at an additional cost. Jaguar's Adaptive Cruise Control is an optional feature available on both models. Both models came with all-leather interior, burl walnut trim, and side airbags. Two interior configurations were offered, the sport configuration was aimed at young buyers and had a leather interior with cloth seats while the classic trim featured more amenities.
The XK range received a mechanical update in 2002 with the engines in both the XK8 and XKR models being enlarged to 4.2 litres and gaining more power, the front headlamps were also updated by the addition of a clear lens. Further changes included new exterior colours and wheels along with different badging. The models were revised again in spring 2004 and notable changes included new wheel designs, bigger front and rear spoilers and a redesigned grille.
Initially, the ZF 5HP24 five-speed automatic transmission was coupled to the conventionally aspirated 4.0-litre model and a Mercedes W5A580 five-speed transmission to the supercharged version, but in 2002 the new ZF 6HP26 six-speed automatic transmission was fitted in both versions of the 4.2-litre model.