Mike Stevens | Jan 5, 2011

BMW's compact X1 SUV may soon face competition from all corners in the premium segment, squaring off not only against the upcoming Audi Q3, but also a new offering from the Volvo camp.

According to British magazine Autocar, Volvo plans to capitalise on the success of the XC60 medium SUV, which is currently the brand's best-selling model both in Australia and internationally.

Reported back in March last year, the rumoured 'XC30' is expected to built on a version of the small C30 platform, while drawing its styling cues from the larger XC60 and the brand-new S60.

Modified to accommodate a four-wheel-drive layout, the tweaked platform will reportedly be offered with a 'standard' wheelbase close to the C30, along with a stretched version for the Chinese market.

So important is the XC30 to Volvo, that its development is understood to have been made a priority over plans for replacing the ageing S40 sedan, now six years old.

In Australia, Volvo launched its new S60 sedan in November last year, and its V60 wagon sibling is scheduled to arrive early this year.

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