The upcoming Volvo XC40 has been spied a couple of times in the past. The recently received spy shots show the crossover being tested in Granada, Spain.

Just like the previous prototypes, this one is also wearing camouflage, but the key exterior components can still be easily recognized. So far, we know the new Volvo XC40 will use the Volvo’s Compact Modular Architecture (CMA), which will also underpin all the 40-series models. Once launched, the compact SUV will rival against the likes of Mercedes-Benz GLA, BMW X1 and Audi Q3.

Talking about the exterior design, up front the Volvo XC40 will feature exclusive ‘Thor’s Hammer’ headlights, stretched taillights and a small lip spoiler. The interior was also spied last month fitted with a large infotainment display, three-spoke steering wheel, vertical air vents and a straight-forward center console design.

The powertrain details have not been officially announced yet, but reports suggest the XC40 will be powered by a new 1.5-liter three-cylinder engine, while a turbocharged and a diesel unit will also be available as an option. Moreover, a plug-in hybrid engine might also arrive later on.

The automaker is expected to introduce the new Volvo XC40 later this year. We cannot confirm right now regarding the UAE debut.