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After dealing with mid- and full-size SUVs with the XC60 and XC90, the Swedes are now testing a car that's meant to give the Audi Q3, BMW X1 and Mercedes-Benz GLA trio something to think about.

Volvo's entry in the compact segment will be named the XC40 and, having already seen some test mules, it's obvious it will borrow familiar styling cues from both the XC90 as well as the new S90.

What this implies is that we'll probably be looking at a masculine and elegant small SUV that will have its own distinct identity to mix it with the German establishment.

Production for the new 40-series model will take place at Volvo's Ghent factory in Belgium, as the site is currently being prepared for the arrival of the models based on the CMA platform.

It's possible that the final product will look similar this rendering, since Volvo's new design language has proven to be a huge hit with customers. Can the XC40 replicate its larger siblings' sales success against rivals like the new and very improved BMW X1? The answer is not so far away.

Renderings courtesy of Theophilus Chin

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