My recent softening to the Volvo brand in the form of the C70, S80 and V50 has seen me transformed into something of a closet fan of the brand. Always comfy armchairs for soaking up miles in comfort and security Volvos have been adding other strings to their bow, namely dynamic ability and, erm, a not insignificant amount of coolness and desirability. The brand has expanded as part of Ford's Premier Automotive Group and has branched out into new niches with an air of confidence and optimism many would have thought highly implausible only a decade ago.

The XC90 we have on test here is the purest indication yet of this "new" Volvo. It is an SUV, a lifestyle vehicle designed to sell as much on image as capabilities and shamelessly aimed at the brands Volvo would love to be seen in competition with, BMW and Mercedes. The launch of the XC90 is a bold move by Volvo, but a sensible and logical one given the brand's base in family cars and load carriers. The XC90 we had on test was the range topping T6 SE; at nearly £46k it stands toe to toe with some big hitters from Germany.

Volvo's XC90 is a huge imposing machine. Taking cues from the saloons it has many of the hallmarks of modern day Volvos, just bigger! It is a lane-clearing monster on the motorway and a control deck six feet above the road gives an excellent view over parked cars and hedges alike. The price for this bulk is some unwieldy manoeuvring in confined spaces. You need extra room to feed the beast through traffic around town and parking is not a quick and easy operation; opportunities to park become less common due to the footprint you need to accommodate.

On the open road you are always aware that the car is large and heavy but it doesn't overwhelm. The chassis is well set up to contain the bulk and it drives like a large luxury saloon, just with a higher driving position. The major controls are quite light and the XC90 responds well to the helm. Slow and smooth inputs are rewarded, as sudden exaggerated movements can unsettle its composure. The big Volvo rides well with the suspension proving to be very supple but not so soft as to let the body control suffer. The XC90 is an accomplished companion over urban potholes or undulating country road. Ultimately it's its bulk that limits progress and it isn't as agile as a BMW X5 but driven as the majority of the intended purchasers would drive it is a cracking chassis on the road.

Performance wise the big Volvo is deceptively capable. In isolation, a 0-60mph time of just under ten seconds is not quick, especially when you have 272bhp at your disposal. However, when you consider that there is over two tonnes on the hoof the performance isn't that bad, and the very long gearing doesn't help. At the end of the day nothing nullifies power and torque like bulk and aerodynamics; physics always wins out. Also, be warned that driving the T6 enthusiastically will see you spending the five minutes or so it takes to fill the tank rather more often than your wallet will like. We averaged 16mpg and couldn't extract much more than 21mpg on a cruise. In pure performance terms the XC90 is not in the same league as the X5 or Mercedes-Benz ML, as both rivals offer significantly more go for the same sort of money.

What those rivals don't match though is the Volvo's refinement and unruffled mannerisms, particularly on the motorway. The X5 probably isn't far off in this sense, but the XC90's quiet cruising is up there with a mid size luxury saloon. Wind noise becomes a factor at higher speeds but not to a distracting level. Most owners wouldn't notice it over a low background music soundtrack from the excellent stereo. They'll also enjoy the comfort afforded by the commodious leather seats, with an additional row in the rear, and an air conditioning system that includes controls for each row of seats. Our test car was also fitted with an excellent DVD system with remotes to entertain rear seat passengers.

The third row of seats obviously impacts boot space, but for most occasions this wouldn't be a hindrance. With the rear row cleverly stowed to offer a flat floor the load volume is typically Volvo: massive. The height of the rear load space doesn't hamper or limit practicality either and the split rear tailgate offers quick and easy access on the one hand, and a handy picnic bench on the other. The XC90 is a thorough design that Volvo has obviously thought about in terms of how people actually use their cars.

Our only question marks revolved around running costs, with the fuel consumption in particular being a tough economic pill to swallow, and the issue of whether anyone could actually justify the need for such a big bruiser of a machine. Judging by the amount we're seeing on the roads many can, and I can see why. For me the T6 isn't the strongest XC90 as it gives away perhaps too much, in terms of performance at least, to the BMW X5. At this level the competition is very close; if you go down the range to the D5 the XC90 clinches a less debatable margin of victory.

Recent Volvos have been a revelation for us as they've added dynamic ability to rock solid build and reliability. The XC90 takes this a step further as it carries the premium SUV battle to BMW and Mercedes and comes away as a winner, indeed prospective Range Rover buyers should give it a look. Many will buy the XC90 simply because it isn't German, but all who give it a try will find it to be a very capable machine, a fact reflected in the long waiting lists and strong residual values.