Production of the all-new Volvo XC40 to commence in April

The XC90 is about to get a compact companion in the XC40, which was previewed last year as the Concept 40.1 (pictured above) and is nearly ready to make its car show debut.

The production version of the XC40 will premiere at the Shanghai Auto Show in April, expected to arrive on the US market later this year or early in 2018. The XC40 will ride on Volvo’s new CMA platform, which will also underpin Geely Automotive’s upcoming Lynk & Co 01. Both cars are expected to be build alongside one another in a shared assembly plant in China.

When Volvo first showed the Concept 40.1 last year, the company promised the production model would offer the option of either conventional or hybrid drivetrains. Autoguide expects that Volvo will initially offer the XC40 with either a 1.5-liter three-cylinder, a 2.0-liter four-cylinder, or a variant of Volvo’s plug-in hybrid setup. Like the XC90, the base XC40 will be front-wheel-drive, but can be made all-wheel-drive with either a traditional driveshaft, or an electric motor on the rear axle.

The XC40 will compete with the Audi Q3, BMW X1, and Mercedes-Benz GLA in the increasingly-popular tiny luxury SUV segment. Volvo will also bring an S40 sedan to market, and hopefully, a V40 hatchback too.

The XC90 is a big hit for Volvo–it’s selling well and critics really like it. It will be interesting to see if the XC90’s success can translate to a smaller crossover.