Volvo Cars has unveiled two new concept cars to mark the official launch of its global small-car strategy. The newly revealed 40 series concept models demonstrate for the first time how Volvo plans to expand into the market for premium small cars with a range of vehicles offering high levels of connectivity, electrification and autonomous drive technologies.

The new concept cars will be the first built around Volvo’s new Compact Modular Architecture (CMA), which has been specially created for smaller cars.

“Each member of our product family has its own distinct character, just like the members of a real family. CMA has helped us to capture something special, something youthful in our new concept cars. They have an energy, a disruptive and engaging urban character that makes them stand out among the crowd. This is the flavour of small Volvos to come,” said Thomas Ingenlath, Senior Vice President, Design, at Volvo Car Group.

The new global small-car range will include a pure-battery electric vehicle as well as Twin Engine plug-in hybrid powertrain variants, in line with the company’s commitment to the electrification of its entire portfolio. Volvo plans to have sold a total of up to one million electrified cars by 2025 globally.

“By taking a modular approach to both vehicle architecture and powertrain development, we have succeeded in leap-frogging many of the players in the premium segment,” said Dr Peter Mertens, Senior Vice President, Research & Development. “Our new battery electric powertrain variant opens yet another exciting chapter in the unfolding Volvo story.”

Volvo says the new cars will also offer a full range of innovative connectivity services, plus the world’s most advanced standard package of safety features and ground-breaking Scandinavian interior design.

“The new 40 series cars have the potential to improve our market penetration in an important growing segment,” said Håkan Samuelsson, President and Chief Executive of Volvo Cars. “An electric powertrain program, including both a new compact Twin Engine plug-in hybrid as well as a pure electric car, are central to the CMA architecture.” He added that the first new 40 series car is expected to go into production in 2017.

Volvo has a medium-term ambition to sell 800,000 cars a year, up from 503,000 in 2015.