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.
Three main drive modes will be available with the T5 model: Hybrid, Power and Pure. The first will work to most efficiently combine both parts of the powertrain, while power will maximise the output of both. The final will harness only the electric motor.
Individual and Off road modes are also featured, with the former allowing customisation of how the powertrain works and the latter focused on providing maximum traction in low-grip scenarios.
Volvo’s new XC40 model is part of the brand's wider plans to offer an electrified variant of every car in its range by 2019. Beyond this, Volvo intends for 50% of its new car sales to be fully electric vehicles from 2025.
Its first fully electric car is due on roads next year in the form of an all-new hatchback. The Swedish company said it won’t produce any other totally new models until every remaining model in its line-up has an electrified option.