New Volvo XC60 coming in October

Volvo Car Australia is primed to do battle with the popular BMW X3, Mercedes-Benz GLC and Audi Q5 mid-size luxury SUVs in Australia with its second-generation XC60 from October 2017.

That’s when the all-new five-seat Swedish SUV range will arrive Down Under, spanning three model types with three engine options, but pricing will almost certainly exceed the current XC60's $56,990 starting price.

VCA is keeping mum on the entry price of the new-look, high-tech MkII XC60, but insiders have suggested that increased levels of luxury, safety and semi-automated driving aids will result in a modest price rise to around $60,000 or more.

Nevertheless, the self-assured Swedish SUV is tipped to continue to undercut the X3 (from $63,800), GLC ($67,500) and Q5 ($69,916).

Some of the headline technology available on the new model includes city-safety autonomous emergency braking that works at up to 60km/h and can detect other cars, pedestrians, cyclists and even animals. As well as braking automatically it will also attempt to steer around potential collisions.

The XC60 SUV will also stay within a lane and avoid running off the road by featuring a new "Pilot Assist" function, which will steer, brake and accelerate the vehicle autonomously on "well-marked roads up to 130km/h", according to the Scandinavian car-maker.

Powered exclusively by a range of 2.0-litre turbo-petrol and turbo-diesel engines, the base model Momentum, sporty R-Design and range-topping Inscription models will fill out the range locally.

They will be available with T5 diesel (173kW/480Nm), T6 turbo/supercharged petrol (235kW/400Nm) or T8 plug-in hybrid petrol-electric (300kW/640Nm) powertrains.

A T5 petrol engine (187kW/350Nm) is under consideration as another possible entry-level model.

It's not clear how much the top-shelf 300kW T8 plug-in hybrid model will cost but it could go close to $100,000, particularly when options such as air suspension are added.

VCA corporate and PR director, Greg Bosnich, said the new model is expected to maintain its status as Volvo's top-selling vehicle, both in Australia and globally.

Initially the D5 diesel is expected to be in high demand but the plug-in hybrid T8 model, which has a 45km electric range and fuel consumption of just 2.1L/100km, also has appeal said Bosnich.

"Australians tend to gravitate towards petrol cars but of late, especially with SUVs, we’re seeing a lot of interest for diesels. It could be as close as 50:50, but there's certainly an up-lift in diesel.

"There's also the 300kW T8 twin-engine plug-in hybrid which could be an interesting one as well. It's got a lot of go," he added.

Presenting a determined new exterior design along with a more premium interior than its predecessor, the XC60 will bring standard features including dual-zone climate-control, leather upholstery, a powered rear tailgate, several advanced driver assistance systems, a large 12.3-inch digital instrument panel with integrated satellite-navigation and customisable dials, along with a large vertically-aligned (portrait) touch-screen infotainment system.

Bosnich said the car's biggest drawcard will be the elevated levels of luxury in the cabin, which will be available with massaging front seats, a 15-speaker Bowers and Wilkins stereo and a panoramic glass sunroof.

"Undoubtedly the interior is like nothing else. Every touch point is luxurious. It looks different, it's fresh, it's unique."

One of the XC60's most talked about features, a pop-up booster seat for kids in the back, is nowhere to be seen in the new model. A Volvo executive said it can be expected to arrive in the next model year later in 2018.

The reason for the delay? "Some things take longer than others," was all the exec would say.

Based on the same SPA or scalable product architecture as the XC90 large SUV, S90 sedan and V90 wagon, the XC60 is longer, wider and lower than before, and promises more interior space.

Aussie cars will come from the brand's Swedish factory in Torslanda initially but the company hasn't ruled out vehicles coming from its second XC60 plant located in China.

Volvo's Chinese plant will soon supply XC60 vehicles to other global markets, not just domestically.

"We're a global player now and all our factories build to a global standard. We never say never to anything, but for now our cars are sourced from Europe. But who knows what happens down the track," said the Volvo executive.

Stay tuned for our first drive of the all-new Volvo XC60 next week.