Volvo's latest generation of low-emission Drive-E engines will join the V40 range from May.
The CO2 emissions of the 190hp Volvo V40 D4 with manual gearbox are down 99 g/km (down from 114g/km) wigh fuel consumption of 74.3mpg on the combined cycle.
The D4 Drive-E is also available in Cross Country variants with figures of 104 g/km and 70.6 mpg for manual versions.
"The outstanding take-off and responsiveness of the Drive-E engines, combined with a smooth engine sound, will make the cars even more fun to drive, without compromising on modern customers' demand for superb fuel economy and minimised CO2-emissions," said Michael Fleiss, vice-president Powertrain at Volvo Car Group.
The new D4 will also be available to order with Volvo's new eight-speed Geartronic automatic gearbox, with emissions of 109 g/km (67.3 mpg) while the V40 Cross Country Geartronic produces 112 g/km (65.7 mpg).
Also joining the new D4 in the V40 is the 245hp T5 FWD (front-wheel-drive) from the new Drive-E engine family. Fitted as standard with the new eight-speed automatic gearbox, CO2 emissions have decreased to 137 g/km (from 187g/km) and giving fuel consumption in the combined cycle of 47.9 mpg.
The D4 and T5 are available to order now, however production start of the D4 will be September.
For the 2015 model year, all new Volvo models can now be equipped with the updated on-board infotainment and navigation system Sensus Connect, offering customers a fully connected car.
First seen in the S60, V60 and XC60, the cloud-based services allow the driver to find and pay for parking, discover new restaurants at the destination, stream favourite music seamlessly and much more. The HERE Location Platform provides connected navigation with 3D maps.
The brand new Connected Service Booking app tells the driver when it's time to have their car serviced - and suggests an appointment at the Volvo dealership.