Snapped undergoing winter weather testing, the heavily camouflaged prototype will reportedly also introduce a new small car platform known as Compact Modular Architecture (CMA), which will underpin the next generation V40 and rumoured revived S40 sedan.
The article also states that the XC40 will introduce a new range of downsized petrol and diesel engines, with a 1.5-litre three-cylinder petrol, a four-cylinder diesel and Twin Engine plug-in hybrid being mentioned so far.
Sales are likely to start next year with the international unveiling tipped for the Shanghai Motor Show in April.