THE new seven-seat XC90 sports utility vehicle will be one of the most company car tax-friendly 'soft roaders' on the market, Volvo claims.

Official carbon dioxide emission and fuel consumption figures for the petrol and diesel XC90 with Geartronic automatic gearboxes put it 'ahead of its established rivals, making this luxurious seven-seater equally attractive to corporate drivers and fleet managers alike,' said Volvo.

The 2.4-litre 163bhp D5 unit emits 233g/km of CO2, putting it in the 31% benefit-in-kind (BIK) tax band, while returning 31.0 mpg on the combined cycle.

This puts the XC90 ahead of competitors like the BMW X5 3.0D (29.1 mpg, 259 g/km and 35% tax band) and Mercedes- Benz ML270 CDI (29.7 mpg, 250 g/km, 35% tax band).

The petrol 272bhp, 2.9-litre XC90 T6 returns 21.9 mpg and 309 g/km of CO2, placing it firmly in the 35% BIK tax band, with virtually identical figures to the BMW X5 3.0i.

On-the-road prices start at £29,650 for the D5 and £31,640 for the T6. Volvo expects to sell about 4,000 units annually in the UK, with half petrol and half diesel. Six-speed manual versions with lower emissions and better fuel economy will hit the market in spring 2003.