Volvo XC70 D5

Until now, however, the Audi Allroad has stolen a march on the XC70 thanks to the popularity of the 2.5 TDI diesel version, which outsells its petrol-engined relation by four-to-one. To raise its game against the oil-burning Audi, Volvo has now put its hi-tech, torquey D5 diesel in the XC70.

With the new company car tax regulations in force, the addition of the five-cylinder D5 is a crucial step for the Swedish firm. Volvo has already seen diesel sales double for its mid-size estates since last year, and with the additional glamour that the XC90 SUV is expected to give the brand, the XC70 could become a major thorn in the Allroad's side.

Producing 340Nm of torque at only 1,750rpm, and linked to an electronically controlled four-wheel-drive set-up, the D5-engined XC70 offers excellent grip and power ί¿½ no matter what the terrain or load. Drivers who make long journeys on motorways will be pleased to know that Volvo has also invested heavily in the D5's refinement, and the result is impressive. Once warm, the aluminium unit is hushed, even when under heavy acceleration. The 163bhp engine's lightweight construction also means that the car feels agile in bends and responsive throughout the rev range. Thanks to its variable geometry turbocharger, the big XC70 accelerates from 0-60mph in 11.5 seconds and has a top speed of 121mph.

On rough road surfaces, the forgiving suspension absorbs bigger bumps easily, while the ride height (raised by 40mm over that of the standard V70) ensures that the car's underside rarely snags the ground. The brakes prove effective, whatever the conditions, courtesy of an ABS-backed disc set-up and electronic stability control with brakeforce distribution.

Volvo has also paid close attention to pricing in its bid to grab a slice of Audi's pie. The entry-level S version, driven here with a five-speed semi-automatic, costs ί¿½28,620 compared with ί¿½29,365 for a basic Allroad.

At 224g/km, the D5's CO2 emissions are quite high, so the expected 26 per cent company car tax rating could deter some business users. But there's no need for that to put you off. The D5 is excellent and the XC70 is a sturdy, practical vehicle. Such an impressive combination could well produce furrowed brows at Audi.