VOLVO has released prices of its next-generation SUV, the XC90, which will start at £28,400 (on the road) at its launch in the UK this autumn.

The XC90 has a flexible, innovative interior, with seven forward facing seats.

The car also boasts a choice of powerful common-rail D5 diesel, or 272 bhp, six-cylinder T6 petrol engines and, judging by reports, seems certain to give rivals such as the BMW X5 and Mercedes M-Class some serious competition.

On-the-road prices for the XC90 prices are: D5 S £28,400; D5 S (Geartronic) £29,650; T6 S (Geartronic) £31,640; D5 SE £30,400; D5 SE (Geartronic) £31,650; T6 SE (Geartronic) £33,640.

With nearly 500 orders already taken before the car’s official launch, Volvo says it is confident the stylish XC90 will be “a great success” and attract “a wealth of new customers” to its dealerships.

Initial Volvo XC90s will have an adaptive Geartronic automatic transmission, with manual versions of the D5 following in the spring of 2003.