It's probably down to one thing above all else: high-end engineering.
It's the sort of expertise that is a hallmark of its vehicles and the XC40 continues that excellence.
The XC40 T5 R-Design we drove, epitomises all the characteristics of the brand.
This is top-shelf product, as long on equipment levels as it is on focus on safety, and packaging it up in a vehicle that that seduces the senses.
There isn't a weak spot in it.
Volvo has built the XC40 on what it calls "compact modular architecture".
It's a high-falutin' title and is all about being more efficient in terms of space. But don't think the XC40 is a down-sized version of the XC60 because it isn't. It has its own distinct body lines and interior.
The T5 R-Design has a base price of $72,900 but our tester came with some of the options which bumped the price up to $80,750.
These included the driver support pack (360 degree camera, adaptive cruise control, pilot assist and the parking assist) costing $200.
And it also added the $5000 "lifestyle" pack which gets you a premium sound system, panoramic sunroof, power folding rear head and backrests and tinted glass. Another $450 fits heated front seats.
Then there was the $400 which brings the XC40 off in Lava interior highlights.
This last mentioned won't be everyone's cup of tea. It's a bright orange-coloured flock that doesn't lie there so much as shout out. For the faint of heart there are more conservative colour finishes available.
Powered by a four-cylinder turbo petrol engine, the all-wheel drive T5 is no slouch, moving from standstill to open road legal speed in just over 6 seconds.
And despite it being a turbocharged petrol-engined SUV, it is pretty economical in terms of fuel consumption, using just over seven litres per 100 kilometres.
The XC40 has a number of different drive modes you call dial in, from every-day comfort through to off-road and Dynamic. This last one lets you wring every last bit of performance out of that motor via its eight-speed auto transmission.
There are no issues with the ride or handling and you can set the steering "feel" to three different settings, from a light through to firm.
As for road noise, Volvo has all but eliminated it in the XC40.
Sure, you can't help but get some noise from the coarse road chip but there is absolutely no wind noise that we could detect. Perhaps it's because the edges in this SUV have been so meticulously defined.
It handles itself very well but, remember, it's an SUV and not a family sedan with a low centre of gravity.
The cabin presents its own ideal ambience. Drive position is very good and the seating throughout is as good as it gets.
The dashboard is dominated by the very large tablet-sized touch screen.
Absolutely everything you need to know about the vehicle, including the owner's handbook, is accessed through it. But because it is so inclusive trawling your way through isn't going to be the thing done at highway speed.
A mass of driver aids are standard to the XC40 and the safety package is typically extensive.
Then there are touches like the powered tailgate and the rear seats which can be folded at the touch of a button.
The XC40 T5 R-Design presents a very impressive package. From the some of the quirkiness of its cabin (that garish lava colour finish) to the safety equipment and above the overall finish, it's as good as it gets.
It's the sort of SUV other manufacturers need to aspire to.
Techno stuff …
Volvo XC40 T5 R-Design
Price: $72,900 ($80,750 as tested)
Engine: 2-litre 4-cylinder turbo petrol
Power: 182kW at 5500rpm, 350Nm from 1800-4800rpm
Transmission: 8-speed Geartronic AWD
Suspension: MacPherson strut (front), multi-link (rear)
Brakes: Discs (front vented)
Safety: ABS, EBD, ESC
Size: 4425mm long, 1863mm wide, 1652mm tall, 2702mm wheelbase
Wheels: 20-in alloys, 245/45 tyres
Fuel: 54 litres
She says … with Nanette Maslin
This compact SUV is a winner in every respect, gathering up great performance, stunning technology and luxury.
The ride is super smooth and the cabin is one the sleekest and quietest I've seen in a
long time. Everything about the XC40 shouts premium quality.
The multi-speaker audio system is first rate and I loved the wireless phone charging station in the centre console.
On the road it's responsive and lively and those wide doors make access a breeze.
The XC40 is definitely high end machinery with some very clever interior features
