The Range Rover gets an all-new V8 diesel engine and a series of other significant enhancements for the 2007 model year.

These latest improvements to Land Rover's flagship include a revised cabin design and a host of technical upgrades, such as Land Rover's patented Terrain Response system.

The technologically sophisticated, turbocharged, 272 horsepower TDV8 diesel makes its debut in the Range Rover, and is one of the world's most advanced engines. Compared with the six-cylinder diesel it replaces, it is 54 per cent more powerful, delivers 64 per cent more torque, and yet has the same fuel economy. Land Rover managing director, Phil Popham, said: "The TDV8 diesel is a great new engine, to power one of the world's great vehicles the most complete luxury 4x4.

"Its balance of performance, refinement and economy is unmatched. We believe it makes the Range Rover an even more desirable vehicle, especially in strong diesel markets, and will appeal to many customers who've never considered a diesel before.

"Performance is similar to many more obviously sporty vehicles and fuel economy is comparable with a lot of petrol saloon cars.

"Yet the new Range Rover delivers so much more great comfort, huge carrying capacity, awesome off-road capability and massive towing ability, all with exemplary refinement."

Acceleration is significantly improved, compared with the previous diesel engine and maximum speed is raised to 124mph. In addition, Land Rover says the TDV8 is up to 75 per cent quieter overall, more refined, and has improved brakes and handling.

The new engine is matched to the six-speed ZF intelligent shift' automatic transmission, already used on petrol Range Rover models. The suspension set-up is similar to that of the Range Rover Supercharged, delivering outstanding handling and ride comfort. Large Brembo front brakes are standard.

The Range Rover's outstanding off-road capability is enhanced by the addition of Terrain Response as standard for all 2007 models, together with a centre e' (electronic) differential and the availability of a rear e' differential. Terrain Response allows the driver to select one of five settings on the rotary switch, to suit the terrain. The vehicle's electronic and mechanical controls are then optimised to tackle the specific conditions.