I imagine it would sell quite well, especially in Canada, where almost every other car that isn’t a pickup is about the same size as the V40 (Civic, Corolla, Forte, Elantra, all sell in massive numbers). And even if the segment is a rather popular one, there are pretty much no practical luxury options. Closest luxury car I can think of to the size range is the 2-series, which isn’t really practical, or luxurious. Volvo could very much break into that niche. I’ve heard rumblings that it’s coming, but I don’t think it’s set in stone just yet. Also, the XC40 would probably sell in massive numbers, simply going buy the amount of GLAs I see.