Volvo V40 Drive-E T5 first drive

The most powerful petrol unit in Volvo's new range of hotter engines, badged under its Drive-E family. 

We've already rated the updated V40 highly when coupled with the new D4 diesel powerplant, so this is Volvo's chance to prove that it can accomplish the same feat of extracting impressive performance while maintaining super-frugal emissions from a petrol variant.

Our test route comprised the famous hill climb course at the Goodwood Festival of Speed. We tried one of two of the new V40 models to have so far arrived in the UK. Alongside the D4 model we've already tested it's the first V40 to be powered by one of Volvo's own modular engines.

The T5 is only available coupled with an eight-speed automatic transmission, which seems to suits its nature. In plush R-Design Lux Nav trim, our test car also came equipped with Volvo's integrated navigation system and posh leather sports seats.

The car costs £31,900, but a long list of options including Volvo's Driver Support Pack – which includes safety systems like collision assistance and adaptive cruise control – heated front seats and steering wheel, rear parking camera and a panoramic sunroof raised the total cost of our model to £39,050.

For that price, this Volvo needs to be able to compete with the best premium hatchbacks on the market, namely the Audi A3 and BMW 1-series.

Based on our short drive, superbly capable. 

Waiting in line for the start of our run up the hill, it was impressive just how quiet the T5 engine is. It feels smooth as we pull up to the line, and as the marshall lifts his hand for the off there's a surge of acceleration after a slight – but noticeable – pause as the eight-speed transmission selects its first gear. This car can reach 60mph in six seconds, faster than a 1.8-litre TFSI Audi A3 quattro and just quicker than the BMW 118i Sport.

The engine doesn't feel hurried though and even as it approaches the red line it doesn't sound particularly strained. The automatic transmission does a good job of selecting the right gear, and in Sport mode there's a noticeable decrease in cog-change speed. We'd like to see wheel-mounted paddle shifters added as standard, just like you'll find in the new V60 Polestar, rather than as an option - and without them the manual override seems a little pointless. Fortunately, the gearing seems to be well spaced and the car is rarely lost for pace.

At the end of the run – in considerably more time than Nick Heidfeld's record-breaking climb in 1999 – the V40 settles down to an idle, coasting happily along at close to 1500rpm.

In terms of handling, the V40 feels agile but never unsettled. Its electrically assisted steering is light and accurate, and despite clocking in at 1447kg (52kg heavier than the BMW and 120kg more than the Audi) it moves along the road with polished ease. In short, it feels exactly as a premium hatchback should to drive.

Absolutely. This is a premium Volvo with a newly refined engine, and even after a short drive we're confident the Swedish car maker is on to a winner. There's more good news, too, because Volvo eventually wants to replace its entire bought-in engine line-up with Drive-E units.