When the XC90 was launched back in 2015, it was something of a game changer for Volvo. Introducing the latest revolutionary technology, a stylish new look and some of the best residual values around, the firm’s flagship SUV instantly became a massive hit, especially with fleets.

Fast forward two years and now it’s time for the aging XC60 to get a refresh ? and its reincarnation as the baby XC90 seemed inevitable. Plus, considering the mid-sized SUV represents 30% of global sales and was Volvo’s most popular model for UK fleets last year, it’s fair to say that repeating its big brother’s success is almost guaranteed.

Built on the same platform as the XC90, the XC60 features many of its striking design cues including those ‘Thor’ hammer headlights that now carry all the way through to the grille. Overall, it’s a great-looking car and its sleek and elegant design is among the best in its sector.

Range of powertrains

Like the XC90, you can buy the XC60 with a choice of two diesels or one petrol engine as well as a plug-in hybrid. We’ll touch on the hybrid a little later but it’s the lower-powered 190hp D4 diesel we’re testing here, which is predicted to take the lion’s share of sales.

Although it’s the least powerful of all the engines in the XC60 line-up, opting for the D4 doesn’t mean sluggish performance. Thanks to the 190hp and huge 400Nm of torque, the 0-62mph sprint is achieved in a fraction over eight seconds, while CO2 emissions of 133g/km and a combined fuel economy of 55.4mpg are very competitive compared with rivals, especially considering that the car comes equipped with all-wheel drive as standard.

Interior

The faster D5 manages the 0-62mph sprint a second faster; however, it emits 144g/km of CO2 and has lower fuel economy of 51.4mpg – not worth the extra expense and running cost penalties in our book.

Volvos are not renowned for their sporty driving credentials and the XC60 is no exception. However, refinement levels are impressive, with virtually no road or wind noise intruding into the cabin, even on the motorway, while the standard eight-speed automatic transmission is expertly tuned to the engine.

Because this latest model has had a bit of a growth spurt, the car feels bigger than the previous model when on the road and it’s not as agile as its predecessor in the city either, while the steering, although nicely weighted, lacks any real feedback.

Premium equipment

Even in standard spec the XC60 comes generously equipped with tech; heated seats, sat-nav, two-zone climate control and LED lights with automatic high beam are all included as standard.

Also new for the XC60 is a Pro trim level on all three versions, which makes life easier for business drivers by packaging together a group of popular options that are ideal for fleets, adding around £2,000 to the standard list price of our car.

Volvo has become a leader in safety innovations and this new model showcases three new technologies as standard. The first is City Safety with steering assist, which automatically provides steering input in an emergency to help avoid potential collisions between 31-62mph. Oncoming lane mitigation senses if the car has moved out of its lane and into the path of an oncoming car, and will steer the car safely back into the lane if the driver ignores the warnings.

Side

The final system is blind spot monitoring with steering assist, ideal for the motorway. Operating between 37 and 87mph, the system will automatically apply the steering and place the car back into the lane to avoid a car in the driver’s blind spot.

Situated behind the wheel is one of the classiest cabins you’ll find anywhere. The 9in touchscreen is easy to use, while the fabrics, switches and controls throughout are of excellent quality. In fact, the contemporary and sophisticated cabin is one of the highlights of the new XC60 and arguably puts the SUV at the top of its class.

Practical family car

Longer and wider than before, the new XC60 offers plenty of interior space for all occupants and at 505 litres the boot has more than enough space for the weekly shop or annual family holiday. In addition, the cabin is littered with useful storage compartments including a hidden cubbie beneath both outer rear seats, ideal for storing an iPad or book.

Rear

On the whole-life costs front, our test car’s impressive 45% residual value figure helps keep figures low, beating both the Audi Q5 and BMW X3.

Yes, the Volvo XC60 just looks like a shrunken XC90 inside and out, but this is no bad thing. Its premium looks, superb cabin and excellent suite of advanced technology make it a real best-in-class contender and it should prove even more popular than its big brother.

Volvo XC60 D4 AWD Momentum

P11D Price: £36,950
On sale: May 2017
Residual value: 45.5%
Depreciation: £20,125
Fuel: £5,701
Service, maintenance and repair: £2,587
Cost per mile: 71.5ppm
Fuel consumption: 55.4mpg
CO2 (BIK Band): 133g/km (28%)
BIK 20/40% a month: £172/£345
Boot space: 505 litres
Engine size/power: 1969cc/190hp