The 1.5-litre unit, badged T3, follows the brand’s four-cylinder Drive-E engines of recent years. It gets a six-speed manual gearbox as standard, with an eight-speed automatic available from 2019. Volvo expects the T3 to make up around 10% of XC40 sales.
The first XC40 customers will receive their cars in March, while deliveries of the T3-engined vehicle start in the summer. T3-engined XC40s are priced from £27,905. Performance, economy and emissions figures are yet to be released.
Volvo announced that the engine is the basis for its XC40 plug-in hybrid, which will bear the company’s Twin Engine branding for the electrified version, due at the end of the year.
The news coincides with Volvo’s confirmation that a full-electric version is coming. However, Volvo’s first EV will be a hatchback following the 40.2 concept of last year, meaning the XC40 EV will arrive some time afterwards as the marque’s second zero-emissions car.
Like the full-electric hatchback, the EV XC40 is expected to have a range of around 310 miles.