Volvo's 2.4 D5 diesel engine is now available in its S40 saloon and V50 estate.
The 178bhp five-cylinder unit costs from £23,205 in the S40 and £24,565 in the estate.
In both cars, the diesel will be linked to Volvos' Geartronic automatic gearbox, but a six-speed manual will be available by the middle of next year.
Both cars manage a combined fuel economy of 40.4mpg, and each will have carbon dioxide emissions of 184g/km, which will put them into 26% company car tax band.
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