More Volvo XC40 variants planned

Volvo is expected to launch both a new entry-level variant of its XC40 compact SUV in Australia and a battery-electric version before the end of 2020.

Their arrival will also signal the shift of Australian XC40 supply from Sweden to a new plant in the Chinese city of Luqiao.

The Volvo XC40 T3 is powered by a 140kW/400Nm triple-cylinder 1.5-litre version of Volvo’s turbo-petrol Drive-E engine family.

It will be fitted standard with an eight-speed automatic transmission, front-wheel drive and Momentum specification. A slight power bump is also forecast.

It is the first triple-cylinder engine Volvo has ever built, and we've sampled it here.

As we reported here, the battery-powered XC40 EV will share its 78kWh lithium-ion battery pack with the forthcoming Polestar 2 EV that is also forecast to go on sale in Australia late in 2020.

While the EV will obviously be expensive, the T3 is expected to start in the low $40K bracket (in today’s money) plus on-road costs, setting a new entry-level price for the XC40.

Currently, the Volvo XC40 T4 Momentum is priced at $44,990 but will soon rise to $46,990 as it gains more equipment for the new model year.

But Volvo Car Australia managing director Nick Connor admitted the T3 may actually replace the T4 in the local line-up.

“If you had a T3, would you have a T4 as well?” Connor said. “You would definitely keep the T5.

“The T3 gives us a lower pricepoint but I also think it’s just a nice little car,” he said. “It’s fun and playful, it just works.”

Connor said the XC40 EV represented only a small opportunity for VCA.

“We will offer XC40 BEV when it’s available to us,” Connor said. “Will it be a high volume car for us? Probably not.”