The carmaker said last year that it sees compact cars as a vital growth area in the near future, and the wider range would bring its 40 Series line-up to three models sharing a new scalable platform called the Compact Modular Architecture (CMA).

In line with the 60 and 90 series, the XC40 will put Volvo up against the Audi Q3, BMW X1 and Mercedes-Benz GLA and is the more important addition for the UK and Western Europe.

The S40 saloon is a smaller segment in these markets, but the hatchback version of this car – likely to feature upright rear light units similar to the XC40 concept – will replace the outgoing V40, which remains a core part of its global model range. 

CMA is designed for the brand’s latest drivetrains, including a new line of three-cylinder engines, the four-cylinder petrol and diesel units introduced in its larger models. Volvo has also confirmed a T5 Twin Engine plug-in hybrid, using a three-cylinder petrol engine, and a fully electric drivetrain.

New connectivity services and a suite of safety systems will also be available, including active crash avoidance, driver assistance systems and the ability to send and receive information about road conditions ahead, essentially enabling it to see around corners.