THE premium hatchback market is one of the most competitive in the world and to survive in it any car has to be extremely good.

Eyes are firmly fixed on the right mix of power, economy and green credentials without breaking the bank and one contender which has a card full of ticks is the Volvo V40 Geartronic SE Lux Nav.

Tipping the price scale at £27,770, this one shows how the wind of change that swept through Volvo after some troubled years has been harnessed to best effect.

For a start, the latest V40 takes advantage of Volvo's new range of Drive-E 2.0-litre engines giving this more upmarket option, a true fast diesel, 0-62mph acceleration of 7.2 seconds and 142mph top speed.

And all this comes with a 67.3mpg combined economy readout and CO2 emissions of just 109g/km.

Figures that certainly start the business calculator rolling and figures which have to cause a ripple with some members of the opposition.

And a lot of the competitors are tough cookies, with a goodly number coming from the VAG Group, built on the company's envied MQB platform used for the Volkswagen Golf and the Audi A3 among others..

And in terms of creature comfort, this car features a new connected infotainment system, Sensus Connect and can be specified with the improved top-of-the-line premium sound system by Harman Kardon.

Volvo was once regarded as a manufacturer of hunky, heavy saloons and estates with some coupes thrown in, but now it has a range of cars that have the all-round power to impress.

With typical Volvo lines including the classic V-shaped bonnet, the V40 is one of those second glance designs that soon become must-haves.

The interior is typically Scandinavian in design with strong emphasis on ergonomics and an engaging driving experience.

In truth it feels much larger than it really is and on the road, its rail-riding properties inspire confidence.

The engine has a massive amount of torque available and gives surprisingly sharp acceleration without gulping gallons of the oily stuff as a consequence.

If anything the engine sounds a little gruff at times but that is a small price to pay for what this car offers.

The rigid body and low centre of gravity promote an alert, quick-responding character that focuses on the driving experience, yet without compromising ride comfort.

The steering column's thick tubing and stiff insulator increase torsional rigidity. This also contributes to the enhanced feeling of direct contact with the wheels and the road. The electrical power assist steering (EPAS) uses an electric motor to support the steering rack and the driver can choose between three levels of power assistance.

This car was fitted with the new eight-speed automatic gearbox with paddles on the steering wheel for manual gear shifting when desired, all giving a seamless flow of power.