The XC40 T5 Twin Engine will be powered by a combination of a 1.5-litre three-cylinder petrol engine, and a battery that sends power to an electric motor.
No power figures have yet been officially revealed, however it has been speculated the combined output could be in the realm of 184kW and 400Nm, or about the same as a Ford Focus ST performance hatchback.
The T5 Twin Engine will also be capable of pure-electric driving; Volvo has not confirmed what the all-electric battery range will be.
Three different drive modes will be available for the XC40 T5 Twin Engine; Hybrid, Power, and Pure.
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Hybrid will likely combine both combustion and battery power in the most fuel-efficient manner, while Power will use both systems for the maximum output. Pure will be reserved for electric-only thrust.
Individual and off-road modes will also be included, the former allowing the driver to customise how the powertrain works.
The T5 Twin-Engine hybrid powertrain was co-developed with Volvo’s Chinese parent company, Geely, and will be used in the China-only Bo Rui GE, an SUV unveiled at this week’s Beijing Motor Show.
Volvo Australia will offer two variants at launch, the petrol-powered T5 with 185kW and 350Nm, and the diesel D4 with 140kW and 400Nm.
Both are powered by 2.0-litre four-cylinder turbo engines, with no hybrid technology.