Volvo XC40 revealed

After an embarrassing leak a week ago, the wraps have officially come off the all-new Volvo XC40, a compact SUV due in Australia from May 2018.

It will target models such as the BMW X1 and Audi Q2 and has been dubbed a "premium" small SUV. To that effect it will feature plenty of leather surfaces and brushed aluminium inside, along with a large tablet-style touch-screen infotainment system, a digital dashboard and more connectivity than Silicon Valley.

Volvo reckons the XC40 is "one of the best-equipped small premium SUVs on the market" and it could be offered for around $40,000 in Australia.

It gets a flood of advanced safety features including semi-automated driving functionality, run-off road protection, 360-degree parking cameras and autonomous emergency braking.

But there's also a few surprises, including what the Swedish car-maker calls a "radically new approach to storage".

The XC40 gets several incidental storage cubbies under the seats and in the doors, plus a removable rubbish bin located between the seats. Lump in a flip-out bag hooks and a special area for your mobile phone with inductive charging and Volvo is clearly targeting urbanites with new phones and lots of trash.

As we've previously reported, the new Volvo XC40 is expected to become the Swedish importer's best-selling model, given than it's an SUV in a popular segment. It will join the gigantic XC90 and medium-large XC60 models in Volvo's SUV line-up.

Volvo's first model based on a new modular platform called CMA, shared with Chinese parent company Geely, the XC40 will be offered with a range of different engines, including petrol, diesel and plug-in hybrid.

Built in Belgium, with production to start in November 2017, the Volvo XC40 will also be offered with a new three-cylinder 1.5-litre turbo-petrol engine paired with a dual-clutch transmission. It should pump out at least 110kW.

A pure-electric version will also be part of the XC40 range but that will come later on, says the European car-maker.

Beyond the safety, tech, luxury, storage and engine options, Volvo Australia's managing director, Kevin McCann, says the XC40's styling will also play a big part in its predicted success.

"Volvo has a strong leadership in design. The new XC40 is no exception, even by our already high standards," he said.

"The exterior has an athletic sculpture, while the interior of the XC40 is multifaceted and ingenious, making it yet another example of our human-centric approach. The XC40 is a perfect car for an active Australian lifestyle, and perfectly represents our ongoing transformation plan," stated McCann.

Stay tuned for our first drive of the new Volvo XC40 around the end of this year.