The new engines from the four-cylinder Drive-E engine family – already seen in the S60, V60, XC60 and S80 – take the form of the 242bhp petrol turbo T5 and the turbo diesel D4 with 188bhp. Both are teamed with either Volvo Cars' new eight-speed automatic gearbox or an enhanced six-speed manual tuned for improved fuel economy.

The Volvo V40 D4 with a manual gearbox is down to 74.3mpg on the combined cycle, which corresponds to CO2 emissions at 99g/km. There will also be an even lower 85g/km version available predominantly to customers in the Netherlands. The figure for the V40 Cross Country is 70.6mpg (104g/km) with the manual gearbox.

Meanwhile, the four-cylinder petrol turbo T5 with the eight-speed automatic delivers 54.3mpg (136g/km). All figures are preliminary.

The carmaker added that from May 2014, all new Volvo models, except the XC90, will be available with engines from the new powertrain family.