Special small SUV arrives: Volvo introduces cut-price XC40 Special Edition to stimulate sales of Audi Q3, BMW X1 and Mercedes-Benz GLA rival

A limited Volvo XC40 Special Edition has arrived, offering buyers more value for less in the highly-competitive small SUV segment.

Priced at $59,990 drive-away, the XC40 Special Edition is $2000 cheaper than the previous entry-level Volvo XC40 Plus variant, yet gains additional features like a 360-degree camera, 19-inch alloy wheels, half-leather seats and free premium paint.

That’s on top of features that already come standard on the base model, such as a 9.0-inch multimedia system that runs Google’s Android Automotive system (with Apple CarPlay and Android Auto through a wired connection), a 12.0-inch digital instrument cluster, dual-zone climate controls and keyless entry.

The Special Edition is only available with the turbocharged 2.0-litre four-cylinder 48-volt mild-hybrid petrol four-cylinder, which outputs 145kW/300Nm through an eight-speed automatic transmission that delivers power to the front wheels.

Volvo hasn’t indicated how many examples will be available, though with an extended ordering window open until December 26, 2024, it appears Volvo Australia could be looking to move some petrol-powered stock before their full-EV transition in 2026, four years before their parent company’s global target.

The Swedish automaker has previously indicated that it will rebrand electric versions of XC40 into the EX40 SUV.

It is not clear whether Volvo will continue to sell mild-hybrid versions of the XC40 until 2026 or if production will end sooner.

The XC40 has struggled on the sales charts this year, with sales down 46.7 per cent this year to date, from 3528 sales this time last year to just 1879 as of July.

It is likely that the XC40’s fully-electric sibling – the EX30 – is eating off its plate, having recorded 1314 sales for 2024 after arriving in Australia earlier this year.

Order books for the XC40 Special Edition are open now.