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Volvo undercuts competition with first XC40 small SUV

Not so XC: Upon its entry into Australian showrooms, the XC40 will reset the pricing benchmark for premium small SUVs.

Premium small SUVs put on notice as Volvo XC40 goes after price leadership

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Volvo logo26 Mar 2018

VOLVO Car Australia (VCA) has announced sharp pricing for the first XC40 small SUV ahead of its launch next month, helping to establish a new price leader in the premium segment.

Similarly powered rivals, such as the BMW X1, Mercedes-Benz GLA, Audi Q3, Mini Countryman, Infiniti QX30 and Jaguar E-Pace, are priced higher than the XC40, which will initially be offered with the choice of two engines – T5 petrol and D4 diesel – and four grades, including Momentum, R-Design and their corresponding Launch Edition versions.

The T5 Momentum opens the full-time range from $47,990 before on-road costs, rising to $54,990 for the T5 R-Design, while the step up to the equivalent D4 variants adds $3000 to each respective price.

Meanwhile, the limited-run T5 and D4 Momentum Launch Edition variants check in at $52,990 and $55,990 respectively, with a claimed $10,120 worth of extras included for the $5000 premium.

Comparatively, the T5 and D4 R-Design Launch Edition variants cost $56,740 and $59,740 apiece, packing $6670 worth of value for the $1750 spend.

Curiously, VCA is yet to reveal the full standard specification of the Momentum and R-Design grades, but dual-zone climate control, a 9.0-inch touchscreen Sensus infotainment system, Apple CarPlay and Android Auto support, autonomous emergency braking, and cross-traffic alert will be on offer.

Furthermore, the Momentum Launch Edition adds a sunroof, adaptive LED headlights, adaptive cruise control, a 13-speaker Harman Kardon sound system, tinted windows, heated front seats with thigh extenders, a power-folding headrest and backrest, five-spoke 19-inch alloy wheels, 360-degree cameras, park assist, keyless entry, a power tailgate, a power-adjustable passenger seat, ambient lighting, an alarm system and leather upholstery over the regular Momentum.

Alternatively, the R-Design Launch Edition grade increases the standard R-Design’s specification levels with a sunroof, tinted windows, an alarm system, heated front seats, a power-folding headrest and backrest, adaptive cruise control, park assist, a 360-degree camera and a 13-speaker Harman Kardon sound system.

T5 variants are motivated by a 2.0-litre turbocharged four-cylinder petrol engine that produces 185kW of power and 350Nm of torque, while D4 variants employ an identically sized diesel unit that develops 140kW and 400Nm.

Both powertrains send drive exclusively to all four wheels via an eight-speed automatic transmission with torque convertor.

As previously reported, a 1.5-litre turbo-petrol three-cylinder engine with 115kW and 265Nm will become available in Australia next year, lowering the entry-level cost of the XC40 even further, while plug-in hybrid and pure-electric powertrains are expected to lob in 2020.

According to VCA managing director Nick Connor, the XC40 holds great promise for local new-vehicle buyers that are in the market for a premium small SUV.

“SUVs continue to be very popular with Australian car buyers, and the compact-SUV segment is also growing rapidly. In such a competitive market you need to stand out from the crowd,” he said.

“We are confident that with its very distinctive look and competitive pricing, the XC40 will make an immediate impact with buyers who are looking for something very different from the cookie-cutter models in the compact-luxury-SUV segment today.

“XC40 is a proper SUV and is the perfect car for an active Australian lifestyle. It perfectly complements our already award-winning SUV line-up.”

Sales in the $40,000-plus small-SUV segment were led last year by the X1 (3658 units), which was trailed by the GLA (3321), Q3 (2843), Q2 (1999), Countryman (797) and Q30/QX30 (225).

2018 Volvo XC40 pricing*
T5 Momentum (a)$47,990
T5 Momentum Launch Edition (a)$52,990
T5 R-Design (a)$54,990
T5 R-Design Launch Edition (a)$56,740
D4 Momentum (a)$50,990
D4 Momentum Launch Edition (a)$55,990
D4 R-Design (a)$57,990
D4 R-Design Launch Edition (a)$59,740
*Excludes on-road costs

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