Volvo XC40 2018 confirmed for Australia

Volvo has unveiled its XC40 at an overnight event in Milan, Italy, with the carmaker's first-ever compact premium SUV to arrive in Australian showrooms during the second quarter of next year.

Slotting below Volvo's mid-size XC60 and large XC90 SUVs, the new model will go toe-to-toe with the Audi Q3, BMW X1, Mercedes-Benz GLA, Lexus NX, Mini Countryman, Range Rover Evoque and the upcoming Jaguar E-Pace.

The XC40 is underpinned by the Swedish brand's Compact Modular Architecture (CMA) platform, which will also be employed by other forthcoming 40 Series models – including the anticipated S40 sedan and next-generation V40 hatch.

According to a Volvo Car Australia spokesperson, the SUV will be offered with the choice of two 2.0-litre turbocharged four-cylinder engines from launch, either a 184kW T5 petrol or 142kW D4 diesel.

More details on these powerplants will be revealed at a later date, but both will be exclusively matched to an eight-speed automatic transmission and all-wheel drive (AWD) system.

The SUV will be offered with the choice of two 2.0-litre turbocharged four-cylinder engines from launch.

Overseas markets will eventually have access to 116kW T3 front-wheel drive (FWD) and 142kW T4 AWD petrol units, as well as an 112kW D3 FWD/AWD diesel.

Volvo says hybrid, pure electric and three-cylinder powertrain options will be added to the XC40 line-up in the future, but Aussie timing and specifics remain a mystery for now.

While it is unclear what local specifications will be, equipment lists are sure to be long if the UK-spec model is anything to go by.

In the United Kingdom, the XC40 will be available across three grades – Momentum, R-Design and Inscription – for each of the engine options, while corresponding Pro variants add even more kit.

The entry-level Momentum grade includes a 9.0-inch 'Sensus' touchscreen multimedia system, voice control, satellite navigation with live traffic updates, three USB ports, 'Volvo On Call' smartphone app and emergency services, LED headlights, dual-zone climate control a 12.3-inch digital instrument cluster and 18-inch alloy wheels.

Safety and driver assistance features extend to rear parking sensors, AEB, pedestrian detection, lane departure warning and lane keep assist with oncoming mitigation.

Equipment lists are sure to be long if the UK-spec model is anything to go by.

R-Design variants have a sporting intent, with a sports suspension, gloss-black front grille and front/rear bumpers, black roof and side mirrors, integrated dual exhaust pipes, leather/nubuck upholstery, front seat thigh extenders and aluminium dashboard inlays.

Alternatively, luxury-focused Inscription versions include leather upholstery, powered tailgate, front parking sensors, driftwood interior inlays and chrome exterior highlights.

The Pro derivative of the Momentum adds a powered driver's seat, heated front seats and windscreen, dynamic headlights, and high-beam assist.

Meanwhile, the R-Design Pro also picks up 20-inch alloys, and the Inscription Pro gains 19-inch wheels and a powered passenger seat.

The options list consists of a 'Xenium' package – panoramic glass sunroof, 360-degree cameras and park assist – as well as a Pilot Assist semi-autonomous mode, Android Auto/Apple CarPlay support, wireless smartphone charging and a 13-speaker Harman Kardon sound system.

As a guide, UK pricing for the relevant Aussie variants ranges from £34,655 ($A59,444, D4 R-Design) to £37,905 ($A65,019, T5 Inscription Pro).

Will the Volvo XC40 make some noise in the compact premium SUV segment? Tell us what you think in the comments below.