Volvo has expanded its XC40 premium compact SUV range, strengthening the appeal of the reigning European Car of the Year with new powertrains and trim levels.

The new powertrains are led by the debut of the much-anticipated T3 petrol, Volvo’s first ever three-cylinder engine. The latest addition to Volvo’s Drive-E engine family, the T3 is ideally suited to the XC40’s role as a nimble and efficient, urban-friendly vehicle. The compact, 1.5-litre, direct-injection unit develops a healthy 156hp at 5,000rpm and is matched to a six-speed manual transmission. An eight-speed automatic option will be introduced at a later date.

There’s no shortage of pulling muscle from the XC40 T3, with 265Nm of torque available from 1,850 all the way to 3,850rpm. This helps to support a towing capacity of up to 1.6 tonnes with a braked trailer. Acceleration is equally impressive for an entry-level petrol engine, with 0-62mph dispatched in 9.4 seconds. Against this lively performance, benchmark efficiency figures reveal combined cycle fuel economy of up to 45.6mpg and CO2 emissions from 144g/km.

The XC40 line-up has further grown with the addition of the well-proven 2.0-litre, four-cylinder T4 petrol and D3 diesel engines. The 190hp T4 comes with all-wheel drive and an automatic transmission as standard, while the 150hp D3 offers both manual and automatic options, the latter with the added choice of front- or all-wheel drive. The established 247hp T5 petrol and 190hp D4 diesel complete the engine line-up, both with all-wheel drive and an automatic transmission.

The XC40 range also now offers a full spectrum of equipment grades: Momentum, R-Design and Inscription, each with an optional ‘Pro’ upgrade.

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 for the T3 Momentum manual to £37,620 for the T5 Inscription Pro automatic.