Along with the concept previewing the new XC40, Volvo has also unveiled the concept 40.2 which is a precursor for the next-gen V40 hatchback.

The concept uses an electric powertrain that we’re told will offer up to 350km of range. It was revealed alongside the brand’s XC40 crossover concept, called 40.1. Both will be built on Volvo’s new Compact Modular Architecture platform, which underpins both the company’s smaller products and those of its Chinese parent company, Geely.

The 40.2 looks dramatically different from the current-generation V40. It’s a hatchback, but with a very sedan profile at the rear end, and we believe that if it does go into production, Volvo will continue to make a more conventional V40 hatchback alongside it. The Volvo 40.2 concept looks more like a sedan which could also mean that the Swedish carmaker is readying a rival to the Mercedes CLA and upcoming BMW 1-series sedan.

The electric powertrain incorporates a battery pack under the floor driving a motor that turns the front wheels, but Volvo has released no performance figures apart from Merkel’s claim that the CMA-based EV will have an electric range of around 350km.

Volvo has also restated its commitment to selling one million cars with a part electric powertrain – either EVs or hybrids - every year by 2025.