The model mixes the 1.5-litre three-cylinder engine of the T3 with an electric motor. Volvo has yet to reveal outputs, but reports suggest the petrol unit provides 178bhp while the electric motor adds 74bhp. Together, they offer a combined 247bhp and 295lb ft of torque.
The new powertrain is capable of pure-electric running, although Volvo hasn’t disclosed its range yet.
The powertrain has been co-developed by Volvo’s parent company, Geely, and it’s also set to be used in that firm’s Lynk&Co models, the 01 and 02. Geely has also used the powertrain in its new flagship saloon for China, the Bo Rui GE.
No further details for the XC40 PHEV have been announced, but the Geely saloon is claimed to be good for 176.5mpg, suggesting a similar number could be possible in the XC40, likely during urban driving when pure electric power can be utilised.