Volvo is expanding the electrification of its XC40 compact SUV with a new plug-in hybrid and the ending of diesel model sales.

The new Volvo XC40 Recharge Plug-in Hybrid T4 has a 12% BiK tax rating

Arriving ahead of the early 2021 launch of the fully electric XC40, the new XC40 Recharge Plug-in Hybrid T4 joins the existing Recharge Plug-in Hybrid T5 while the range also gains two new mild hybrid petrols. At the same time, Volvo has stopped sales of its diesel XC40 models – part of plans announced two years ago to phase out diesel engines from 2019.

The T4 plug-in hybrid brings a lower-powered and priced alternative to the T5, opening up plug-in hybrid technology to a wider market.

It uses a 129hp 1.5-litre three-cylinder petrol engine and an 82hp electric motor with seven-speed automatic transmission and front-wheel drive. The 10.7kWh rechargeable lithium-ion battery provides an all-electric range of up to 27 miles – enough to carry out typical commuting journeys zero-emission.

It also offers fuel economy up to 134.5mpg and CO2 emissions from 47g/km and (WLTP Combined cycle data). As such, it attracts a 12% BiK rating, making it an attractive proposition for business/company car drivers.

Its sub-£40,000 price tag also means the Recharge Plug-in Hybrid T4 avoids the £325 Vehicle Excise Duty surcharge. It’s available in R-Design and Inscription equipment grades, priced from £39,130 on the road and starts first deliveries to UK customers from October 2020.

In addition, Volvo has added two new mild-hybrid petrol versions to the XC40 line-up in the form of the new XC40 B4 and B5. The 197hp B4 comes with front- or all-wheel drive, and the 250hp B5 is exclusively with all-wheel drive – both have an eight-speed auto as standard.

Both feature a 48-volt battery to support a 2.0-litre petrol engine. A kinetic energy recovery system and an integrated starter generator add to the overall efficiency.

The new powertrains replace the previous T4 and T5 petrol engines in the XC40 line-up. On-the-road prices are from £32,760 for the B4 (Momentum FWD) and £37,865 for the B5 (R-Design).

In the longer term, first UK deliveries of the new XC40 Recharge Pure Electric P8 are scheduled for early 2021.