Analysts believe Volvo’s efforts on the XC40 will be rewarded. “It will give more established premium compact SUVs such as the Audi Q3 and Mercedes GLA and even the new Jaguar E-Pace a run for their money,” IHS Markit analyst Ian Fletcher said.
IHS Markit expects Volvo to sell 125,000 XC40s globally at the crossover’s peak, led by China (25,000 to 27,000 sales), the United States (16,000) and the U.K. (14,000).
“They are not huge numbers but they are consistent with where the brand has been," Fletcher said. "They also would provide a huge boost to Volvo’s overall numbers."
IHS Markit forecasts Volvo selling 733,500 vehicles by 2020 and reaching its 800,000-unit goal in the middle of the next decade.
Asked whether the XC40 could duplicate what its bigger sibling has done and rise above the segment-leading German brands, Fletcher said: “We’ve seen it happen before so it could happen again. But it really depends on how they price it.”
Volvo said the T5 all-wheel drive Momentum trim will start at $36,195 at launch. In summer 2018, a T4 fwd model will be introduced starting at $34,195. All U.S. pricing reflects a $995 destination charge.