Volvo took the wraps off its XC40 compact luxury SUV late September, a vehicle it says will come with the most powerful base engine in the segment, a 250-horsepower four-cylinder.

The XC40 marks Volvo’s first foray into the small SUV segment, and it’s decided that for Canada it will come in an all-wheel-drive T5 variant. It’s the base T5 Momentum that gets the 250-horse 258-lb-ft-of-torque 2.0-litre turbo four, mounted to an 8-speed gearbox.

Volvo boasts the XC40 offers unique storage solutions, with under-seat and in-door compartments, a removable trash bin in the center console, and spots meant specifically for wireless charging your phone.

The XC40 gets all of the safety suites and other tech its bigger brothers offer, including Pilot Assist, City Safety, Sensus Navigation, 360° Camera, and Volvo On Call.

Because it’s based on Volvo’s new modular platform, the XC40 is also ready to take hybrid or fully electric drivetrains, so look out for those in the future.

The T5 Momentum trim will bow in spring 2018 at $39,500 alongside a sporty R-Design variant that starts at $43,700, squaring off against the likes of the Range Rover Evoque. An Inscription trim will follow in the summer. The XC40 will be built in Belgium beginning late this year.

(Volvo Canada)