With the all-new XC40, Volvo has ventured into new territory, the luxury compact SUV market. As the demand for such vehicles is on the increase Volvo had no other option than to follow the market, and the market never gets it wrong… Except if you work in investment banking. Volvo doesn’t require investment banking advise because the XC40 should see a solid run of profits. The XC40 order books are open now for UK punters with first deliveries expected in Q1 2018. Trim levels are in keeping with the rest of Volvo’s modernisation program, Momentum, R-Design and the self-styled luxurious Inscription. Entry level models will retail at £27k for the T3 XC40 Momentum, manual with. The XC40 uses Volvo’s all-new Compact Modular Architecture (CMA) platform and will be offered with front- or all-wheel drive, with the option of manual and automatic gearboxes. Initially, three petrol and two diesel engines will be made available, with power ranging from 150 to 250 hp. All these engines are 2.0-litre, four-cylinder units: there are 156 hp T3, 190 hp T4 and 247 hp T5 petrols, and 150 hp D3 and 190 hp D4 diesels. Most of the tech and optional extras such as lane assist, wireless connectivity etc is being sourced from the current Volvo offerings, so the toys you find in the XC90 will be available in the XC40 including  Volvo’s  Sensus 9″ touchscreen infotainment system. Standard features include LED headlights, dual-zone climate control, a 12.3″ active TFT configurable driver’s digital information display and rear parking sensors. Alloy wheels are 18″ as standard, with up to 21″ wheels available as an option. Inscription models will be full on luxury leather and fully loaded to the hilt with every conceivable optional extra Volvo can throw at the XC40. Volvo will offer the UK market T5 and D4 “First Edition” (£40k and 39k respectively) models which are basically R-Design Pro spec XC40’s with a special edition paint job and extra, extra, extra kit.