Volvo is so confident in the booming compact SUV segment that it believes its yet-to-be-revealed XC40 could become its best-selling model.

Set to debut later this year, the XC40 will rival the likes of the Mercedes-Benz GLA, Audi Q3 and BMW X1 and during an interview with Australia’s Motoring, the company’s local corporate and PR director Greg Bosnich revealed his optimism in the car.

“Potentially it could be bigger than XC60. Next year [2018] the XC40 comes to Australia, in the second quarter, after it goes into production later in 2017.

“It’s a fast-growing segment, it’s got significant potential and for us it’s all new business. We don’t even have a vehicle in that [small SUV] segment yet,” Bosnich said.

Underpinning the Volvo XC40 will be the firm’s Compact Modular Architecture (CMA), already previewed in the Lynk & Co 01 SUV and set to be used throughout the 40-series range of models.

In terms of engines, our sources claim the XC40 will debut a new 1.5-liter three-cylinder and also receive a number of turbocharged petrol and diesel engines. A plug-in hybrid is expected to join the range shortly after.

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