VOLVO'S plug-in hybrid XC60 T8 delivers superb performance combined with all the practicality needed from a mid-sized SUV.

You may need to sit down for the price-tag though.

That's because this is one of the most powerful versions of the XC60 and with its 2.0-litre petrol engine working in tandem with the electric motor, this family model can power from 0-62mph in just 5.5 seconds.

We sampled the XC60 Recharge Plug-in Hybrid T8 in R-Design Pro guise with all-wheel drive priced at £60,400 - £63,450 with options.

Although the hefty cost may seem steep for a model that starts from around £42,500 with a standard petrol powertrain, there are plenty of financial rewards for opting for the PHEV version.

Firstly, you can save the electric driving range if you will be passing through Congestion Charge zones so will be exempt from billing.

Secondly, if you make the most of the EV-only driving range of just over 30 miles and plug-in regularly you will see exceptional fuel efficiency figures of up to 113mpg.

And, finally, company car drivers will be rewarded due to the vehicle's low carbon emissions figure that starts from 56g/km.

The acceleration out the starting blocks is instant and the power levels are constant with plenty of zip on tap to overtake. The XC60, which is Volvo's best-selling car in the UK, cruises with ease at 70mph on motorways and the cabin is beautifully refined with barely a sound filtering through.

And it's no slouch when faced with twisting B roads either. The road holding is ultra-assured, the steering precise and the car is well-balanced into and out of tighter corners.

There are drive modes called Hybrid, Polestar, Pure, Off Road and Constant AWD. If the daily commute involves quite low mileage, then the Pure setting means the car is driving in EV-only mode.

If you want to add some spice to the mix, Polestar is the setting to opt for as it sharpens up the handling considerably. There are also Auto, Hold and Charge modes that can be selected. These can be used to get the best hybrid use from the system, hold the charge or boost the battery via the petrol engine.

In addition, there is a B mode on the gear lever and, when selected, the car captures extra energy when braking. There are three levels to choose from with the highest setting resulting in single-pedal driving which is really practical in busier town centres with lots of stop, start driving.

The elevated driving position results in excellent all-round visibility and the rear headrests can be automatically folded forward when not needed to offer a clearer view through the rear screen.

The latest XC60 features some new design tweaks that were introduced in 2021. These include new bumpers, a redesigned grille, tailpipes that are hidden from view, extra colour shades plus new alloy wheel designs.

The interior is premium quality throughout with high-end fixtures and fittings, along with all the latest on-board technology.

There is a new nine-inch centre console touchscreen with the Sensor system being replaced by a new Google Android set-up with a voice-activated Google personal assistant. This is very intuitive and easy to operate on the fly and can be used to alter the temperature, plan a navigation route or play selected music amongst other tasks.

Creature comforts include a Bowers & Wilkins sound system, a panoramic sunroof, heated front and outer rear seats, wireless phone charging, Apple CarPlay and a 12.3-inch driver information screen that can be personalised to taste.

Comfort levels are impressive and although there is room for three passengers in the back, the person sat in the middle seat will have to straddle quite a high tunnel.

The boot, accessed via a powered tailgate, can swallow 468 litres of kit - a limit that increases considerably with the 60:40 split-folding rear seats dropped flat. And there are numerous handy storage areas throughout the car, including a glovebox, central cubby, front and rear cup holders and deep door bins.

Charging the XC60 with its 11.6kWh battery takes about three hours, but newer models will feature a larger 18.8kWh battery which will take about an hour longer to charge, but will extend the EV-only driving range to about 48 miles.