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.