Volvo has revealed its all-new XC40 compact SUV ahead of its arrival in the UK early next year.

The new model sits below the XC60 and XC90 SUVs in the firm’s model range and is the first vehicle to be built on the brand’s new compact modular architecture platform.

According to Volvo, the new model, which is set to rival the likes of the Range Rover Evoque and Audi Q3, is designed “primarily for the city” and features much of the technology from the firm’s larger models.

From launch, three petrol and two diesel engines will be available with outputs ranging from 150hp to 250hp.

All engines are 2.0-litre four-cylinder units; the petrol outputs are 156hp (T3), 190hp (T4) and 247hp (T5), while the diesel outputs consist of 150hp (D3) and 190hp (D4).

The T3 is fitted with front-wheel drive only, the D3 is offered in front or all-wheel drive configurations, and the T4, T5 and D4 come with all-wheel drive and an automatic gearbox as standard.

Volvo added that other powertrains are set to be offered during the XC40’s lifecycle.

Standard kit includes a 9in touchscreen, sat-nav, LED headlights, dual-zone climate control with an air filtration system, a 12.3in information display that replaces traditional dials, and rear parking sensors.

R-Design versions add a gloss black front grille and front and rear lower bumper sections, a black roof and door mirrors, dual exhaust pipes, uprated sports suspension and leather/nubuck upholstery.

The top-of-the-range Inscription versions, meanwhile, feature leather-faced upholstery, a power-operated tailgate, front parking sensors, a powered driver’s seat, driftwood interior inlays and a chrome exterior finish.

In addition, ‘Pro’ versions are offered, adding extra kit; Momentum Pro adds a heated driver’s seat and windscreen, while the R-Design Pro features 20in alloy wheels. The Inscription Pro has 19in wheels and a powered passenger seat.

The first XC40s to arrive in the UK will be the T5 and D4 First Editions, which are based on R-Design Pro versions but with even more equipment as standard. Highlights of the enhanced First Edition specification are Pilot Assist, a power-operated tailgate with hands-free opening and closing, heated rear seats, wireless mobile phone charging and the Harmon Kardon sound system.

The XC40 is priced from £27,905.