"Our new three-cylinder engine is an exciting development for the XC40 and for Volvo Cars in general," said Alexander Petrofski, Senior Director Cluster 40 at Volvo Cars, adding: "This compact engine design provides the flexibility we need as we introduce more powertrain options for XC40 customers."

Prospective Volvo XC40 customers will now have more trims to choose from, including the entry-level Momentum and dynamic R-Design versions, plus the luxurious new Inscription trim level.

"The new XC40 is a youthful car that suits drivers with a strong sense of individuality," said Alexander Petrofski. "We want our customers to be able to make a statement their way – subtle or otherwise – and so we want to offer them more choices, both in performance and styling."

Volvo XC40 was first unveiled in Milan last year and is the first car to be based on Volvo Cars’ new modular vehicle architecture (CMA), which will underpin all other upcoming cars in the 40 Series including fully electrified vehicles. Besides the new three-cylinder engine, Volvo XC40 will be available in a D4 diesel and T5 petrol engine options globally.

The Volvo XC40 T3 will be priced at £27,905 on road (Rs 25.24 lakh) in the UK, where customer deliveries are expected to begin this summer. The Volvo XC40 is expected to make its India debut this year. Earlier this year, Volvo also announced that it will set up a new assembly unit near Bengaluru.