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Volvo is expected to unveil a new crossover vehicle at the Paris motor show in September.
Likely to be badged XC40, it will be based on the new V40 five-door hatch and with a jacked-up ride height and potentially broader dimensions.
A spokesperson for Volvo told BusinessCar: "There will be other body styles in Paris. Think taller - V70 to XC70 type of thing, but not a full XC [such as the XC60 or XC90 4x4s]. It will be a very niche car."
Also due to appear at the show in September is an R-design version of the V40, which will serve as a flagship sports model and add features such as sports suspension, larger wheels and body kit. A new version of the aging XC90 large 4x4 is also due in 2014.
Volvo also revealed that it is planning to ditch the five-cylinder engines for which it has become renowned.
A new series of clean four-cylinder units will make their debut in autumn 2013 under the banner Volvo Environmental Architecture (VEA). The company's larger cars - namely the S60 and the V60 - will be the first to receive them.
The move marks one of a number of measures Volvo is taking to distance itself from its former parent Ford after its acquisition by current Chinese owner Geely 20 months ago.
Speaking about the V40, Volvo's spokesperson said: "This is the last car we will build on a Ford platform. The direction of travel is more of a divorce from here on.
"Our opportunity is to be the alternative choice [to the 1-series and the A3]. It will appeal to mainstream upgraders [from lower medium models such as the Ford Focus and VW Golf] who are there in massive numbers.
"We've been off radars since the mid-'80s with a five-door hatchback, which is the biggest segment in the country."
The company also has plans to expand its presence in the EV market, having signed a partnership with Siemens to develop components for electric vehicles and potentially supply them to other manufacturers.
In terms of its fleet in the UK, Volvo has "wound back considerably from Motability", which bosses believe to
be too expensive a channel to be commercially viable in the current economy, concentrating instead on true fleet and small businesses. The firm's spokesperson concluded: "We did a lot of work with a new team focussing on SMEs last year and that's now starting to bear fruit."
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