New car sales price Volvo V40

Volvo's V40 premium hatchback goes on sale next month for $34,990 - in 1.6-litre turbodiesel six-speed manual guise - although an automatic option doesn't appear in the pricelist until the D4 two-litre five-cylinder turbodiesel Kinetic at $41,990.

The Swede's value equation - which puts it up against a number of European hatchbacks including the sharply-priced A-Class from Mercedes-Benz - also includes free scheduled servicing for three years or 60,000km.

A world-first pedestrian airbag is among the standard safety features arsenal that resulted in the V40 a five-star NCAP crash test result, scoring the program's best-ever score.

The advanced safety features pack includes adaptive cruise control with collision warning and automatic braking functions, blind spot and lane departure warning, a cross traffic warning, Driver Support Pack ($5000) active high beam and automatic parking functions.

The option package - available on Luxury and R-Design models - also includes the road sign information system that can decipher roadside speed limit signs and display them in the vehicle's high-tech instrument panel.

The five-door Volvo range will be available in three different trim types - Kinetic, Luxury and R-Design - and tops out at just under $50,000.

Volvo Car Australia managing director Matt Braid says the brand was surprised by the sharp A-Class pricing but was still aiming for 800 to 1000 sales in the vehicle's first year on the market.

Mr Braid says the value of the included maintenance was valued between $1500 and $2500, depending on the model.

"Combined with an incredibly sharp opening price point, the V40 is a car that offers extraordinary value for money, class-leading safety attributes, world-first innovations... all up, it is an extremely compelling offering to potential customers purchasing in this segment," he says.

Volvo V40: