Volvo has prioritized the development of an entry-level SUV as part of a broader future model strategy instigated by its new boss, Stefan Jacoby. 

The compact SUV, due to hit global markets by the end of 2013 and will be sold under the name XC30, has been conceived to compete on performance, features and price with the new BMW X1 as well as the upcoming Audi Q3 and a junior off-roader presently under development at Mercedes-Benz, expected to be called the GLC.

It’s also being designed to provide the sort of profitability achieved by the cool-looking XC60, the company’s best-selling model which is also available in India.

Insiders describe the five-seat XC30 as being instantly recognizable as a Volvo with an appearance “in the mould of the XC60 but with added visual dynamism and a class-leading interior”. At around 4350mm in length, the new Volvo is 280mm shorter than the XC60.

There may be two different versions of the XC30: a standard-wheelbase version for Europe and a stretched model for China and, perhaps, North America. However it remains to be seen which version comes to India if Volvo launches the XC30. When launched, the XC30 will be a direct competitor to the BMW X1.