New XC90 can outsell X5, says Volvo

Volvo Car Australia (VCA) believes its all-new XC90 has what it takes to outsell the likes of BMW's X5, the Range Rover Sport, Audi's new Q7 and the replacement for Mercedes-Benz's M-Class to not only become its most popular model, but Australia's top-selling large luxury SUV.

The bold claim was made by VCA managing director Kevin McCann at this week's local launch of Volvo's second-generation SUV flagship – the first new XC90 in 12 years.

"We can never hope to beat the Germans in terms of the full range," said McCann. "But within the [large SUV] segment our ambition is to be at least be equal, and the XC90 is certainly the vehicle that will do that sooner rather than later."

The original XC90 was one of Volvo's biggest selling and most profitable models in Australia, where the largest Volvo model has attracted more than 15,000 sales since 2003. Sales are down 70 per cent so far this year, however, with just 122 sold, while the smaller XC60 has become VCA's best-seller ahead of the V40 and S60.

VCA says it has 160 firm XC90 orders and about 400 Australians have signed-up to buy the new model subject to a test drive or trade-in valuation when the SUV officially goes on sale this Saturday (August 8), from about 1500 potential customers who have expressed interest.

However, the XC90 has a long way to go before it emulates the sales success of the X5, Australia's top-selling large luxury SUV with 2300 sales in the first half of this year.

Behind the X5 in this year's $70,000-plus SUV sales race is the Range Rover Sport (1448), Land Rover Discovery (1373), Volkswagen Touareg (1346) and Mercedes-Benz M-Class (1148), which will be replaced by the renamed GLE-Class in October.

Other imminent new entrants in the expanding large premium SUV segment, which comprises more models and almost double the sales of the mid-size luxury SUV sector in Australia, include the next-generation Audi Q7 and Lexus RX.

For now, the new seven-seat Scandinavian SUV is available only in entry-level Momentum and mid-spec Inscription guises – each with a choice of petrol (T6) or diesel (D5) engines.

R-Design versions of the new XC90, which entered production in Sweden last year, aren't due here until the end of the year and the range-topping T8 Twin Engine plug-in hybrid is at least six months away.

Until then, the range will comprise four variants ranging in price between $89,950 and $100,950 (plus on-road costs), as announced last October.

That makes the most affordable new XC90 some $20,360 more expensive than the cheapest old model, and lineball with its chief existing German rivals in the X5 (from $84,200), M-Class (from $83,900) and Q7 (from $91,500).

Volvo expects its biggest XC to also be cross-shopped with SUVs like the Lexus RX (from $64,110) and Porsche Cayenne (from $106,100).

The 2015 XC90 range begins with the Momentum D5 from $89,950. Powered by a twin-turbocharged 2.0-litre four-cylinder diesel engine, the model makes 165kW and 470Nm. It is said to consume as little as 6.8L/100km on the ADR Combined cycle and accelerate to 100km/h in 7.8 seconds. The diesel-powered XC90 range is topped by the Inscription D5 ($96,950 plus ORCs).

For petrol fans, the line-up comprises two offerings, each specified identically to the D5. The XC90 Momentum T6 and Inscription T6 are each powered by a twin-charged (supercharged and turbocharged) 2.0-litre four-cylinder petrol engine rated at 235kW and 400Nm. Both petrol models are $4000 dearer than the comparable diesel at a respective $93,950 and $100,950. T6 models are said to consume 8.5L/100km on the ADR Combined cycle and accelerate to 100km/h in 6.5 seconds.

Range highlights include a 12.3-inch digital instrument panel and iPad-esque 9.0-inch centre screen. The central touch-screen offers swipe, pinch and zoom functionality similar to tablets and smartphones, and is used to access every auxiliary feature of the XC90. The seven-seat SUV has only eight hard buttons on the dashboard with infotainment, telephony, climate and navigation systems accessed via either the Sensus centre screen or the steering wheel-mounted controls.

The Momentum-spec XC90 is also offered as standard with voice control, Wi-Fi connectivity, front and rear parking sensors, a reversing camera, 19-inch alloy wheels, 'Hammer of Thor' LED headlights and DRLs, leather trim, quad-zone climate-control (with outlets to all three rows) and Volvo's City Safety system.

The model is available optionally with metallic paint ($1700), air suspension ($3600), a panoramic sunroof ($2950), DAB+ digital radio ($500), heated seats ($375), ventilated and heated Nappa leather upholstered seats ($2950) and a Bowers & Wilkins 19-speaker, 1400-Watt premium audio system ($4500).

A bundled safety pack known as IntelliSafe Assist -- adding adaptive cruise control, lane-keeping assistant, queue assistant, distance alert and speed-limiter -- is available for $2600. A Driver Support Pack with those items listed above plus head-up display and 360-degree camera costs $4000.

Inscription variants, which effectively sit plum in the middle of the local XC90 line-up, offer 20-inch alloy wheels, keyless entry and hands-free tailgate functionality, cross-traffic alert, rear collision warning, blind-spot monitoring and those items included in the IntelliSafe Assist package. Comfort Nappa upholstery is also standard, as are a number of differentiating trim items, including a chrome strip along the doors, dual exhaust outlets and integrated roof rails.

Equipment and specification of the R-Design and T8 variants is yet to be locked-in, though Volvo has hinted that 20-inch black alloy wheels, an R-Design body styling pack, paddle shifters and sportier trim will be offered, with the T8 plug-in hybrid adding a tyre repair kit (in place of the space-saver spare wheel), panoramic sunroof and Orrefors cut-crystal gear selector knob. The R-Design T6 will be priced from $101,950 and R-Design T8 from $122,950 (plus ORCs).

While the XC90 R-Design T6 will offer identical power and performance to its T6 siblings, the T8 plug-in hybrid adds a 65kW electric motor into the bargain with an additional 240Nm of torque. The PHEV variant is said to consume as little as 2.1L/100km on the NEDC Combined cycle while being able to sprint to 100km/h in as little as 5.6 seconds.

Read our launch review of the all-new Volvo XC90