Geely's Volvo Cars said it had received almost 80,000 orders for the new XC40 small SUV and was expanding production in Europe and China to meet demand.

Production would be expanded at its Ghent manufacturing plant in Belgium while production capacity would be added at its Luqiao plant in China in the first half of next year.

The company also announced it would capitalise on the popularity of its new smaller models with the introduction of new models on its Compact Modular Architecture (CMA), replacing the current V40.

"The XC40's success has surpassed even our highest expectations," said Hakan Samuelsson, president and CEO of Volvo Cars. "The small SUV segment is the fastest growing segment in the industry now, and with these additional CMA-based models we expect to benefit further from that growth."

The coming new models based on CMA will include fully electric vehicles and will be sold globally in all major regions. More product details will be disclosed later.

The XC40 was launched in late 2017 to global acclaim and was the first Volvo to win European Car of the Year.

It is the first model on the new CMA vehicle architecture co-developed with Geely Holding which provides the necessary economies of scale for this segment.