Subaru has announced a £2,300 price reduction on the XV compact crossover model, made possible through a more favourable exchange rate.

The price reduction applies to every model in the Subaru XV range, and brings the entry point to the range down to £18,995.

The Subaru XV has permanent all-wheel drive as standard and the 2.0D returns 50.4mpg  on the combined cycle and 146g/km of CO2.

Its high ground clearance contributes to the car’s genuine off-road ability, while Subaru’s trademark low centre of gravity aids the car’s responsive handling.

Standard specification includes front, side, curtain and knee airbags, front passenger airbag auto-disable, 17-inch alloy wheels, daytime running lights, heated front seats, wiper de-icers, CD player and a comprehensive  Multi-Function Display. The popular SE model also gets cruise control, folding door mirrors, dual-zone air conditioning, rear view safety camera, Bluetooth, and rear privacy glass.

The XV has a five-star Euro NCAP crash safety rating combined with 90% rating for child occupant protection and a five-year, 100,000-mile warranty is also standard.

Haydn Davies, marketing director, Subaru UK, said: "Compared to rivals, the XV is one of the most robust and most economical cars available. We have taken the first opportunity to re-price the model given the changes to exchange rates and believe the  price reduction now gives customers the greatest value for their money."

New pricing for the Subaru XV by model is as follows: