Volvo previews new XC40 SUV and S40 sedan with new concepts

New 40 series concepts hint at upcoming XC40 small SUV and third-generation S40.

Volvo has given us a glimpse of its next step into the small car market with images of two new concepts.

Officially titled ‘40 series concepts' for now, the SUV and sedan likely hint at an upcoming XC40 entry into the small SUV segment and a replacement for the S40 sedan not seen since the arrival of the current V40 generation in 2013.

Volvo isn't saying which concept will reach production first, but plans for the first model to launch next year before an expected Australian arrival by early 2018.

An 'XC40' crossover would compete with the likes of the Audi Q3, BMW X1, and Mercedes-Benz GLA, whereas the sedan would take on the Audi A3 sedan and Mercedes-Benz CLA.

Volvo concept 40 sedan

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Volvo concept 40 sedan

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Volvo concept 40 sedan

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Volvo concept 40 sedan

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Volvo promises that the 40 series will be offered with a full range of innovative connectivity services, along with what they deem as 'the world's most advanced standard package of safety features'.

Both 40 series concepts will be based on Volvo's new Compact Modular Architecture (CMA), which is specifically created for smaller cars, and engineered to be able to adopt the same advanced safety and connectivity technologies that are already present on the brand's flagship 90 series models, the XC90 and S90.

Production versions of the new small concepts would no doubt be paired with Volvo's Drive-E range of 3-cylinder and 4-cylinder, petrol and diesel engines.

A new 'T5 Twin Engine' plug-in hybrid variant would likely sit at the top of the range, and follow the same drivetrain layout as the existing 'T8 Twin Engine' variants of the XC90 and S90.

Volvo concept 40 SUV

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Volvo concept 40 SUV

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Volvo concept 40 SUV

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Volvo concept 40 SUV

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The T8 setup uses a combustion engine to power the front axle, while electric motors power the rear with power drawn from a bank of batteries fitted beneath the car's centre tunnel.

Volvo has also confirmed the new global small car range will also feature a pure battery electric vehicle, though whether it will be part of the 40 series sedan and SUV line-ups, or a standalone model, remains to be seen.

Volvo's upcoming 40 series model range is essential to the brand's medium-term goal of achieving a global sales target of 800,000 units, from 503,000 recorded last year.