The C30 Design concept will be unveiled at the Detroit Motor Show, while the production model will be launched at the Paris Motor Show in September.
"We know there are large numbers of fairly young, successful people who are attracted by our brand, but who still cannot find a model in our range that exactly matches their taste and lifestyle. The Volvo C30 Design Concept was developed precisely for this group," says Fredrik Arp, President and CEO of Volvo Cars.
According to Volvo the C30 is aimed at singles or couples without children, who regard the car as a tool for pursuing their hectic lifestyles.
"The Volvo C30 plays an important role in the hunt for sales growth to 600 000 cars a year. It is vital that we broaden our model range so that customers with an active urban lifestyle can choose a Volvo with the right appeal as early as possible," says Arp.
The car shares its design cues and underpinnings with that of the S40. Its' interior and dashboard layout is also similar to the S40.
There is no official indication yet about the C30's engine range but entry-level models will probably feature a 1.6-litre unit, while the rest of the line-up will reflect that of the S40. The range-topping model will come with the T5's 162kW unit.