The new powertrains are led by the debut of the much-anticipated T3 petrol - Volvo's first ever three-cylinder engine and the latest addition to the Swedish brand's Drive-E engine family.
The T3 is ideally suited to the XC40's role as a nimble and efficient, urban-friendly vehicle with its compact 1.5-litre, direct-injection unit that produces 156hp at 5,000rpm and 265Nm of torque from 1,850 to 3,850rpm.
Furthermore, the engine is matched to a six-speed manual transmission, while an eight-speed automatic option will be introduced at a later date.
This little T3 petrol engine gives the littel XC40 compact SUV the ability to tow up to 1.6 tonnes with a braked trailer, yet dispatch 0-100kph sprint in 9.4 seconds, have a combined fuel economy of up to 45.6mpg (5.16L/100km) and carbon dioxide emissions from 144g/km.
The latest T3 petrol now forms up the ranks of its other XC40 compact SUV brethren in England that include the 2.0-litre, four-cylinder T4 petrol and D3 diesel engines.
The XC40 range also now offers a full spectrum of equipment grades: Momentum, R-Design and Inscription, each with an optional 'Pro' upgrade.
The standard equipment featured on Momentum model includes the Sensus 9.0-inch touchscreen control with smartphone connectivity and satellite navigation, automatic LED headlights with Active High Beam, 18-inch alloy wheels and a dual-zone climate control system that monitors and maintains cabin air quality.
Also included is the Volvo On Call remote control and emergency assistance service that comes as standard together with keyless entry with push-start button, rear parking sensors, cruise control, automatic wipers and integrated roof rails.
As for the R-Design models, these have been distinguished by exterior features such as a Black Stone roof and door mirrors, high-gloss black grille, front and rear skid plates, roof rails and window frames, dark-tinted rear windows, integrated dual tailpipes, and alloy wheels with a striking diamond-cut and matt-black finish.
The sporty theme continues inside with R-Design tread plates, black headlining, sports pedals and a perforated leather wrapping for the steering wheel and gearknob.
Equipment features include leather and Nubuck upholstery, front seat cushion extensions and LED front fogs, while offering a more dynamic suspension setting compared to stock and includes stiffer springs, thicker anti-roll bars and faster-acting rear shock absorbers.
The Inscription specification builds on the Momentum grade with contemporary luxury items including Driftwood cabin inlays, leather-faced upholstery, a power-adjustable driver's seat, ambient door and instrument panel lighting, and a powered tailgate.
An Orrefors crystal glass inset adds a special quality to the gearshift lever on automatic versions, front parking sensors, matt silver skid plates and chrome grille inserts are also part of the package.
The Pro versions of each grade introduce further comfort and convenience elements, including heated front seats, larger-diameter wheels (on R-Design Pro and Inscription Pro models), active bending headlights, LED front fogs with cornering function, and a heated windscreen.
A wide range of option and accessory packs are available for customers to individualise their XC40.
All models are available with the Intellisafe Pro pack, which includes Volvo's pioneering Pilot Assist driver-assistance system.
This provides steering, braking and acceleration control to help keep the car within its lane, and at a set speed or a safe distance from any vehicle ahead.
The full XC40 range, extending to 38 different combinations of engines, equipment grades and transmissions, is on sale now, with on-the-road prices ranging from £27,610 (RM146,115) for the T3 Momentum manual to £37,620 (RM200,000) for the T5 Inscription Pro automatic.