The Volvo XC40 is a compact SUV you can own on contract

The new XC40 adds a smaller sibling to Volvo’s long-established XC60 and XC90 SUV model range and is the Swedish brand’s first model based on Volvo’s new CMA modular vehicle architecture, which is set to underpin all future ’40-series’ models.

To coincide with the introduction of Volvo’s new BMW X1, Audi Q2 and Mercedes-Benz GLA-bashing small premium SUV, the XC40 will see what Volvo describes as a ‘reinvention’ of the traditional car ownership model, with its new ‘Care by Volvo’ subscription service. Care by Volvo, first available on the XC40 from launch, makes having a car as transparent, easy and hassle-free as having a mobile telephone, according to Volvo.

Care by Volvo will entail a monthly flat-fee subscription with traditional down payments, price negotiations and local price differences belong to the past. Care by Volvo will also include access to a range of digital concierge services such as fuelling, cleaning, service pick-up and e-commerce delivery to the car. New XC40 drivers will also be the first Volvo customers who can share their car with friends and family via Volvo on Call with a new digital key technology. Car Sharing comes as standard for Care by Volvo customers.

From the start of production, the new Volvo XC40 will be available with a D4 diesel or a T5 petrol four-cylinder Drive-E powertrain. Further powertrain options, including a hybrid, as well as a pure electric version, will be added later. The XC40 will also be the first Volvo model to be available with Volvo Cars’ new three-cylinder engine.