With the introduction of the X308 generation in 1997 came a switch from the XJ6 and XJ12 nomenclature to XJ8, reflecting the fact that the X308 cars were powered by a new V8 engine.
The exterior styling of the X308 was similar to the X300 with minor refinements such as a change to oval indicator lenses and round fog lights.
The interior was also updated to eliminate the instrument binnacle used on the X300; instead, three large gauges were set into recesses in the walnut-faced dashboard in front of the driver.
The major mechanical change was the replacement of both the inline-six and V12 engines with new eight-cylinder AJ-V8 in either 3.2 L or 4.0 L versions, with the 4.0 L also available in supercharged form in the XJR (A sport oriented model).
No manual transmission was available, and all X308 models were supplied with a five-speed automatic gearbox.