The latest and smallest pocket-rocket from Sweden is being eyed by Volvo Car Australia, which is in the final stages of price negotiations for the performance flagship of the V40 range.

The R-Design model will again be limited to the T5 drivetrain - unlike its home market where it can be applied across the petrol and turbodiesel engine line-up.

In Australia the V40 R-Design will have 187kW and 360Nm (400Nm on overboost) at its disposal to propel it to 100km/h in 6.5 seconds, with an electronically-limited top speed of 250km/h.

It will top a range of V40 engines that will start with an 84kW/270Nm 1.6-litre four-cylinder turbodiesel (in manual only), a 2-litre, 5-cylinder 130kW/400Nm turbodiesel, a 2-litre 132kW/300Nm 5-cylinder turbocharged petrol that will only be available with an automatic transmission.

Volvo Australia's Oliver Peagam says the brand was still fine-tuning the line-up and pricing but was hopeful of getting the R-Design available from launch. "It's going to be early next year, we're hoping to have it as part of the V40 launch in the first quarter. "Historically we've only had an R-Design on the T5 and T6 engines, I think we'll be maintaining that tradition," he says.

Available in six colours, including the pictured Rebel Blue, the new V40 R-Design is laying claim to having the looks and high performance driving experience to back it up. The snout has been altered with a new glossy "silk-metal" grille, with the same finish applied to a number of other exterior trim pieces, as well as an "ironstone" rear diffuser, twin exhausts and sits on 18in "diamond cut" alloy wheels.

The cabin gets the mainstream V40's new dashboard, which offers three layout choices for the driver, Elegance, Eco and Performance - the difference in the R-Design being that all three carry the blue-colour theme. Seating is upgraded but Volvo says they are still a clearly Scandinavian design - leather and Nubuck trimmed with an R-design logo, or an optional full-leather pew is available.

The cabin also gets model-specific steering wheel, gear shift, handbrake and sports pedals, as well as aluminium trim additions. Volvo Car product strategy senior vice president Lex Kerssemakers says the R-Design's attention to detail covers the expressive design as well as the agile, precise performance.

"The V40 R-Design is designed around the performance-minded individual with a passion for those things that add extra spice to life," he says. Sitting on what Volvo calls a heavily-modified version of the Ford Focus platform, the V40 R-Design's Sport suspension sits 10mm lower and has been developed in conjunction with Swedish race-ace Robert Dahlgren and the Volvo Polestar Black R team.

The springs and dampers have been tightened up accordingly and anti-roll bars' diameters have been increased as well. Volvo says R-Design buyers' passion for a fast-paced life is not just about speed and acceleration "Agility and precision are equally important for these performance-minded individuals. The Sport chassis is designed to offer a class-leading, intense driving experience, no matter if you prioritise maximum fuel-efficiency or rapid acceleration," says Mr Kerssemakers.

The Swedish brand is aiming the driver-orientated vehicle at younger buyers. "Previous R-Design models have played an important role for increasing our sales and for lowering the age of our customer base. "We believe that the new V40 R-Design will give this trend another boost," says Mr Kerssemakers.