First Drive: Volvo XC40

It's based on Volvo's Compact Modular Architecture (CMA), which was developed in Gothenburg and will be used by Geeley and Lynk and Co, as well as Volvo's 40 series, which have their own upper bodies developed in Torslanda. This is a versatile if deeply conservative platform; all steel, with MacPherson-strut front and a multi-link rear suspension. It is principally designed for front-wheel-drive but will accept four-wheel drive using a Haldex clutch-based part-time system, plus various powertrains: battery electric, diesel and petrol including the forthcoming three-cylinder hybrid unit.

While single-turbo diesels, front-wheel drive and manual gearboxes will arrive later next year with a starter price of £27,905, the first cars arriving next March will be based on two engines, both Volvo's common, two-litre, four-pot diesel and petrol, with four-wheel drive using an Aisin eight-speed automatic gearbox.

The top model is a 244bhp/258lb ft T5 turbo petrol with a top speed of 143mpg, 0-62mph in 6.5sec, a Combined fuel consumption of 39.8mpg and CO2 emissions of 166g/km. In the fully loaded 'First Edition' trim, it costs £40,055. The diesel is the 187bhp/295lb ft twin-turbo D4 unit with equivalent figures of 130mph, 0-62mph in 7.9sec, 56.5mpg and 131g/km – it costs £39,305.

If you are finding the XC40's cheeky Tonka-toy coachwork something of a swallow, the cabin should calm your nerves, a little. It borrows heavily from the XC60 and XC90, with the Sensus central touchscreen and 12.3-inch TFT driver's binnacle. It's fairly crammed in there, along with those extraordinary ventilators, but from the comfortable and supportive front seats back, it works well with some nice design touches. One of those is the removal of bass loudspeakers from the doors to behind the dash. As a result, the door bins are huge, full length and jolly useful. 

As you move further back in the cabin, the diminishing quality of materials and large, cheaper mouldings start to show; the door cards made of felt derived from recycled drinks bottles or the flimsy load-space cover for example. The rear bench feels narrow, but while it would be a squash for three across, it's more than adequate for two adults. The boot's 460-litre space includes the underfloor storage, but it's big enough and the load floor folds cleverly, and at a touch of a button, the rear seatbacks fold onto their bases to give a flat 1.67-metre long and one-metre wide load bed.

Standard on all models is Volvo's City Safety, which brakes and avoid the collision if it detects a walker, cyclist or large animal in its path. Camera and radar-based mitigation systems include driver alertness, run-off-road protection and mitigation, and lane keeping. Optional equipment is adaptive cruise and pilot assist, blind-spot information and cross-traffic alert.

Optional steering pilot gives a limited self-driving and in this Volvo, you only have to touch the steering wheel lightly to avoid it switching off, but it doesn't steer very smoothly and it shuts off with no other warning than an extinguished dash lamp.

The turbo petrol feels powerful and refined and gives a surprising turn of speed to this 1.8-tonne SUV. The Aisin-sourced eight-speed slurs change precisely and reasonably quickly, but when pressing on it's better to manually change with the steering-wheel paddles.

Volvo's equivalent diesel is gutsy, although it's noisier than some rivals and its combustion vibrations fizz through the major controls. It suits the XC40, though and the eight-speed allows it to work at its best (and quietest) periods. Driving briskly, I achieved 44.8mpg.

Unlike its recently launched Jaguar E-Pace rival, Volvo's XC40 makes no claims to be a sports SUV. It's softly sprung and set up, although the Dynamic adjustment allows you to select more sporting settings for the suspension, steering and drivetrain. While the tyres (20-inch diameter on the petrol, 19-inch on the diesel) will clatter over sharp-edged bumps, in general the ride beautifully balanced over typical UK roads – read terrible. The suspension 'breathes' over bumps allowing the long-travel suspension to cosset the occupants, although the 19-inch tyres are probably the best selection for those not fixated on appearance.

Not that the handling is a disaster and only on occasions does the XC40 feel underdamped, whereupon you can select Dynamic mode to sharpen it up. The steering is accurate but gentle in response and a little dead feeling. The body does roll, but it is well controlled and driven briskly, you can make good progress; it's only if you start throwing it around that the front rolls onto its outside front tyre and the car wants to go straight on. The brakes are powerful, but slightly over servoed and abrupt, so you need to exercise caution on first application.

As well as the normal purchase options, next year, there will be the new Care By Volvo alternative. This is effectively a hire scheme available to customers inside the M25. At £629 a month for a D4 or D5 Momentum over two years, it isn't cheap but offers use of the car and maintenance, insurance, roadside assistance, use of an alternative Volvo for 14 days a year and a concierge service.

Like Skoda's Karoq, the XC40 appears to have been set up for a typical day with a UK family rather than for a race track. Its engines are economical and powerful and the ride and handling compromise is well judged. The cabin and standard equipment list has been compromised compared to the company's more expensive and bigger SUVs, but these diminishments have been managed well and you shouldn't notice them too much. Add in this distinctive and characterful appearance, and the XC40 seems like an expensive if really rather desirable motor car. 

The Numbers 

Engine: 1,969cc, four-cyl, twin-turbo diesel

Transmission: eight-speed torque converter automatic, four-wheel drive

PS/Nm: 190 (187bhp) /400 (295lb ft) 

0-62mph: 7.9sec

Top speed: 130mph

Price as tested: £35,305