Volvo has introduced a new ‘T4’ plug-in hybrid powertrain to the line-up of its popular XC40 SUV.

Joining the XC40 Recharge Plug-in Hybrid T5 (its full name), which has been available since earlier this year, the new T4 is a more affordable and less powerful PHEV version for buyers to choose.

The only real difference between the two hybrids is the fact the T4 uses a slightly less powerful 1.5-litre petrol engine – producing 127bhp next to the T5’s 178bhp. Both cars feature the same 81bhp electric motor and 10.7kWh battery, with the new XC40 T4 producing 208bhp in total.

Volvo claims the model can travel for 27 miles on electricity, which allows for CO2 emissions of 47g/km and a claimed fuel economy figure of 134.5mpg – matching those of the T5 model.

The new T4 is available in R-Design and Inscription trim levels, which cost £39,130 and £39,475 respectively. They work out as £2,000 cheaper than the more powerful T5 model, while sub-£40,000 pricing also means it escapes an additional £325 in road tax for five years after the first registration, which stings premium models costing above £40,000.

Other changes in the XC40 range include diesels being entirely removed from the line-up as part of Volvo’s mission to move away from the fuel as a way of powering its new cars. A pair of mild-hybrid 2.0-litre petrol engines have been introduced (replacing the previous T4 and T5), which produce 194bhp (B4) and 247bhp (B5). Standard T2 and T3 petrol engines remain available, though, while later this year the new electric XC40 P8 will arrive in showrooms.

Kristian Elvefors, Volvo Car UK managing director, said: “The addition of a second plug-in hybrid powertrain and the introduction of our first mild-hybrid petrols to the XC40 range is the latest step in Volvo Cars’ ambitious electrification strategy.

“Combined with the XC40’s existing strengths of striking design, ingenious packaging and advanced safety technology, these new powertrains make an already desirable car even more desirable.”