The first three-cylinder engine in the company’s 91-year history, Volvo Cars launched its new Drive-E powertrain in the XC40 compact SUV.

Developed in-house using the same modular design as Volvo’s four-cylinder Drive-E engines, the  1.5-litre, three-cylinder, direct-injection petrol engine comes with a six-speed transmission; an optional eight-speed transmission will follow next year.

In line with Volvo Cars’ strategy to continue improving economies of scale, the engine will roll off the same production lines as the company’s four-cylinder petrol and diesel engines. Volvo’s current D3 150hp diesel and T4 190hp petrol engines are also added to broaden the XC40 engine offer.

Furthermore, the new three-cylinder powertrain has been deliberately designed for integration into Twin Engine plug-in hybrid cars. A hybridised as well as a pure electric powertrain option for the XC40 will be added later.

The XC40 is expected to launch in India in mid-2018, where it will rival the BMW X1, Mercedes GLA and Audi Q3. There is no information on which powertrain is likely to come to India. Expect a price tag in the Rs 27-30 lakh region (ex-showroom).