The carmaker said the 10g/km improvement over the earlier announced figures were achieved thanks to further tuning which has also brought additional horsepower. The four-cylinder Drive-E turbocharged petrol engines that drives the front wheels produces 320PS and is joined by an 87PS on the rear axle bringing a total 407PS.

The seven-seater SUV also offers 42km of pure electric range and 0-100kph in 5.6 seconds

“We have been working hard to earn our competitive edge and to give our customers the ultimate combination of performance and low fuel consumption. Our Twin Engine technology has enabled us to build on our heritage of efficient powertrain development in a completely new way. Thanks to our new scalable product architecture, and our world class four-cylinder engines, we have a clear and leading position,” said Dr Peter Mertens, senior vice president research & development at Volvo Car Group.

The XC90 T8 Twin Engine will be available later this spring in Volvo showrooms.