First of the Drive-E range to be released is the new D4 diesel, initially offered in the S60 and V60, V70, S80 and XC60 and XC70 models.

It’s more powerful than its predecessor with 181hp and 400Nm of torque, cutting around two seconds off 0-62mph times. Yet it includes, in the S60, a version offering 99g/km of CO2 and as a result free road tax.

When the D4 Drive-E is offered in Volvo’s best-selling V40 later in the year it is likely to be a very attractive business proposition. But speaking to Business Car Manager, Volvo UK’s Managing Director Nick Connor says he’s happy with the size of Volvo’s corporate market, currently 65 per cent of the brand’s total sales, and wants to attract more retail customers.

“For me ideally we would have a 50/50 fleet/retail split” Connor says. “The challenge is to get the next 2500 growth in the retail side of the business. The Drive-E engines will drive the fleet side of the business but I think it will also appeal to retail customers who are focused on VED and fuel economy.”

Volvo UK sales rose 2.9 per cent in 2013. But with the launch of smaller, lighter engines offering more power, while using less fuel and emitting less CO2, and set to spread right throughout the range in the next couple of years, it’s no surprise Connor is predicting a 10 per cent sales gain in 2014 alone…