VOLVO has announced its' second new petrol powertrain in the space of a couple of weeks and this time the new engine is destined for the company's XC40 premium compact SUV range.

Earlier this month, the Swedish maker added a new two litre turbo petrol engine to its' large car range, now it's adding a new three-pot petrol engine to the line-up of power units available for the reigning European Car of the Year.

The XC40's 1.5 litre, T3 petrol engine is the first ever three-cylinder engine produced by Volvo and develops a healthy 156hp at 5,000rpm. It's matched to a six-speed manual transmission with an eight-speed automatic to be launched at a later date.

With 265Nm of torque available from 1,850 to 3,850rpm, there's no shortage of pulling power and the XC40 T3 has an impressive towing capacity of up to 1.6 tonnes with a braked trailer. Acceleration is equally impressive for an entry-level petrol engine, with the 0-62mph sprint dispatched in 9.4 seconds.

Combined cycle fuel economy is quoted as being up to 45.6mpg with CO emissions from 144g/km.

Versions fitted with the new engine join an extensively revised line up of XC40 models which now extends to 38 different combinations of engines, equipment grades and transmissions at prices ranging from £27,610 for the T3 Momentum manual to £37,620 for the T5 Inscription Pro automatic.

The line-up has grown with the addition of two more powertrain options in the shape of Volvo's two-litre, four-cylinder T4 petrol and D3 diesel engines. The 190hp T4 comes with all-wheel drive and automatic transmission as standard, while the 150hp D3 offers both manual and automatic options, the latter with the added choice of front- or all-wheel drive. The established 247hp T5 petrol and 190hp D4 diesel complete the engine line-up, both with all-wheel drive and an automatic transmission.

The new range, which is on sale now, comes in three equipment grades - Momentum, R-Design and Inscription - each of which can be specified with an optional 'Pro' upgrade.

Standard equipment is generous with entry level Momentum models coming with a nine-inch touchscreen controlling multiple on-board functions, satnav, automatic LED headlights with active high beam, 18-inch alloys, dual-zone climate control, Volvo On Call remote control and emergency assistance service, keyless start, rear parking sensors, cruise control, automatic windscreen wipers and integrated roof rails.