Volvo’s head of R&D, Henrik Green, said: “It’s not a problem to have an XC20,” given that the car maker has both the platform hardware and the engines to suit a model pitched against the Q2.
“The CMA platform can be made smaller,” said Green of the new Compact Modular Architecture small car platform that the company is codeveloping with Geely for the XC40, the next-generation V40 and sister brand Lynk&Co.
Speaking at a preview event for the new XC60 SUV in Sweden last week, Green said that although the hatchback C-segment in which the V40 competes continues to be the largest in Europe, the boom in the sales of SUVs and crossovers looks like continuing and is being closely watched by the manufacturer.
Sales of small SUVs are expected to exceed two million by 2018, according to forecaster LMC Automotive, having reached 1.4 million sales last year.
Most of these models are from mainstream volume manufacturers such as Nissan, Peugeot, Renault, and Suzuki. Audi’s recently launched Q2 is the only premium model in the segment, potentially indicating a major opportunity for Volvo.