THE second-generation Subaru XV takes its Impreza-on-stilts foundation a step further with a Forester-style AWD system and greater points of difference.

WHAT IS IT? The classic ‘Outback’ treatment for Subaru’s latest-generation Impreza hatch, creating a new-generation XV. Slightly larger outside and significantly roomier inside than before, it gets the X-mode all-wheel-drive system from the larger Subaru Forester (when fitted with a CVT automatic), making it potentially more useful off-road too.

WHY WE’RE TESTING IT? On the cusp of its Japanese on-sale, and two months before it lands in Australia, we’ve been given a ‘preview’ drive of the new-gen XV up in the mountains three hours from Tokyo. But this is no ‘here’s the car, go for your life’ launch drive. It’s a carefully planned on- and off-road loop with little opportunity for real-world dynamic assessment.

THE WHEELS VERDICT Despite its small boot and mediocre performance, the old XV sold up a storm in Australia. Given the new car’s big step up in room and cabin finish, not to mention refinement and general driving smoothness, the 2017 XV should bolt from Subaru showrooms. The biggest letdown is its lack of drivetrain choice. A car with as much potential as the new XV deserves more muscle.

PLUS: Imposing exterior styling; stylish and roomy interior; capable AWD system; confident handling with effective ESC calibration; smooth drivetrain; bright colour palette

MINUS: Some ride firmness on 18-inch wheels; engine lacks the muscle to take advantage of the XV’s AWD chassis grip; no manual for Australia

That’s the Subaru XV formula. As with the previous model, it’s an Impreza hatch in thick-soled hiking boots with more air beneath its floor, additional body cladding and a unique name. But XV Version 2.0 is based on the brand-spanking-new fifth-generation Impreza, meaning a lighter yet stronger platform, external dimensions expanded just where they needed to be, and a sizeable improvement in packaging efficiency. This one has space, even in the formerly emaciated cargo area.

Chief improvements include 100mm additional boot width and 350-litre volume (enough for three golf bags to lie flat, apparently), 26mm extra from rear hip point to floor, and another 20mm in body width without expanding the overall mirror-to-mirror measurement.

That said, on a muddy and snowy off-road course at a Japanese ski resort, the XV’s ability to claw itself through the rough stuff remained unquestioned, X-mode or not.

The new XV also debuts Subaru’s ‘Eyesight’ safety system (in mid-range and top-level models), with multiple cameras supporting front and rear AEB, and adaptive cruise control.

The rest of the XV’s spec sheet reads like a virtual facsimile of the new-gen Impreza. That means the same 115kW/196Nm 2.0-litre direct-injection flat four mated exclusively to a CVT automatic (despite the fact that 12 percent of previous XV buyers chose a manual, and that a six-speeder is still offered to Americans), and the same mediocre level of performance.

In the meantime, it’s situation normal for the XV. Its casual acceleration allows plenty of time to admire its roomy, quiet, comfortable and high-quality interior, and its chassis feels closely aligned to the Impreza’s, meaning sweetly balanced handling, superb grip and an effective, yet nuanced ESC calibration.

There’s also the caveat that the JDM-spec XVs we drove sat 20mm lower than what Australian cars will. When the new-gen XV lobs in June – mirroring Impreza’s 2.0i, 2.0i-L, 2.0i-Premium, and 2.0i-S spec levels – ours will offer a Forester-matching 220mm of ground clearance, mitigated slightly by the XV’s greater front overhang.

As for outrunning a murderous John Jarratt in the dead of night, best head for the (hopefully not-too-steep) hills. That’s the XV’s starring role.

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SPECS Model: Subaru XV 2.0i-S Engine: 1995cc flat 4, dohc, 16v Max power: 115kW @ 6000rpm Max torque: 196Nm @ 4000rpm Transmission: CVT automatic Weight: 1460kg* 0-100km/h: 10.0sec* Economy: 7.4L/100km* Price: $35,000* On sale: June

* estimated