Available across the S60, V60, XC60 and S80 models with a choice of manual or new eight-speed automatic gearboxes, the D4 unit is part of a new family of Drive-E petrol and diesel engines, all of which have a capacity of 2.0-litres and are turbocharged.

Volvo said the engine is the first application of i-ART technology, which allows each diesel injector to monitor fuel pressure and inject only the required amount of fuel for combustion. In the S60 and V60, this has contributed to some of the best fuel economy in its segment, at 74.3mpg on the combined cycle.

Derek Crabb, vice president powertrain engineering at Volvo Car Group, said: ‘During the development phase of our Drive-E powertrains, we promised to bring efficient driving pleasure into a new dimension. The official European NEDC certification now confirms that we outperform competitors when it comes to power versus CO2 emissions.’

All of the new Drive-E engines are compact and designed to work with electric motors, which can either be fitted at the front or rear axle of the vehicle with a battery under the floorpan. The carmaker’s forthcoming XC90 will utilise this for a range-topping plug-in hybrid model.