This is it, meet the new Volvo XC40, which celebrates its launch debut today in Milan. The compact SUV is the smallest XC model offered by the Swedish carmaker, positioned below the XC60 and XC90.

The XC40 rides on the company’s Compact Modular Architecture (CMA), which will underpin all other upcoming cars in the 40 Series including fully electrified vehicles. It measures 4,425 mm long, 1,863 mm wide, 1,655 mm tall and has a wheelbase measuring 2,702 mm. The sporty stance you see is courtesy of a wider rear track (1,626 mm) compared to the one at the front (1,601 mm).

Previewed by the 40.1 concept from last year, the XC40 carries over many of the cues found on the show car. The bold Volvo grille at the front can be had in different designs depending on trim line (R-Design or Momentum), and they are flanked by the brand’s well-known LED headlights (with ‘Thor’s hammer’ LED daytime running lights).

Along the sides, simple lines create scalloped sections near the hood and rearmost pillar, as well as the lower section of the doors. Another highlight is the black-painted roof, which is part of a two-tone theme that sees the shoulder line act as a separator between roof and body. If black isn’t to your liking, other colour schemes are available as well, along with a variety of wheels (from 17 to 21 inches in size).

As for the rear, vertical taillights wrap around the pillars, and are clearly independent of the rear hatch. On R-Design variants, there’s dual exhaust outlets, whereas Momentum cars have theirs tucked away. A roof spoiler is standard, and follows the same colour as the one chosen for the roof.

Moving inside, you’ll find elements from the XC40’s larger stablemates, most notably with the portrait-format, nine-inch Sensus Connect touchscreen infotainment system and 12.3-inch digital instrument cluster. A decorative inlay splits the upper and lower sections of the dashboard, available in either Urban Grid Aluminium or Cutting Edge Aluminium designs. The trim is also applied on the door cards, and for an even more premium feel, ambient lighting is installed here.

Volvo says the XC40 is well suited to city living, and offers a bevy of suitable and functional storage spaces as a result. For instance, the bass speaker commonly found in the doors has been moved to behind the dashboard, allowing for a larger door pocket to store a laptop, iPads, water bottles, etc.

Elsewhere, the storage beneath the armrest is large enough to contain a tissue box, and just ahead of it is a removable waste bin. You still get conventional cupholders here, and at the front of the centre tunnel, there’s a storage space for your smartphone with wireless charging capability. For items that are meant to go into the boot, there’s 432 litres of cargo space available.

The kit list includes a dual-zone climate system with a CleanZone air filtration system and rear air-con vents, leather upholstery, powered seats, high performance audio system (Harman Kardon Premium Sound is optional) and Volvo On Call mobile app service.

Under the clamshell bonnet, the XC40 will first be offered with 2.0 litre four-cylinder engines. The first is a D4 turbodiesel unit that serves up 190 hp and 400 Nm of torque, while the other option is a T5 Drive-E petrol powerplant with 247 hp and 350 Nm of torque. These engines are paired with an AW TG-81SC eight-speed Geartronic automatic transmission and an all-wheel drive system (front-wheel drive comes later on).

Further powertrain options, including ahybridised and pure electric version will be introduced later on. The former is likely the T5 Twin Engine plug-in hybrid powertrain shown to us in Sweden two years ago. Volvo also adds the XC40 will be available with a new three-cylinder engine in the future, likely the 1.5 litre unit used in the T5 Twin Engine.

Safety and driver assistance features on the XC40 include Volvo Cars’ Pilot Assist system, City Safety, Run-off Road protection and mitigation, Cross Traffic alert with brake support and a 360-degree camera.

Volvo also introduced the new ‘Care by Volvo’ subscription service, a service that makes “having a car as transparent, easy and hassle free as having a phone.” With the service, customers will only need to order online, and drive away in a new Volvo without having to worry about down payments, insurances, taxes, service fees and geographical or customer age related differences.

All that is needed is to pay a standard (unified price in Eurozone countries), ready-negotiated monthly fee like you would with most subscription services (i.e. Spotify). After 24 months, customers can even opt for a new Volvo vehicle of their choice. The service is also backed by digital concierge services, such as fuelling, cleaning, service pick-up and e-commerce delivery to the car., depending on regional availability.

The XC40 will be the first model to be offered with the new service, which will be made available to customers in Sweden, the United Kingdom, Germany, Spain, Italy, Norway, Poland and the United States, with other markets set to follow at a later stage.