Since 2016, the company’s plant has assembled the 2.0-liter Volvo D4204T23 diesel engine, which is fitted to the S90 sedan, V90 station wagon, and XC60 and XC90 crossovers in D5 modifications. Such a diesel engine has a PowerPulse system and two turbines, one of which is VGT.

D4204T8, D4204T11, D4204T14, and D4204T23 are Diesel Drive-E engines.
The engine was mounted on:
- Volvo S90 II (234) since 2016;
- Volvo V90 2 since 2016;
- Volvo XC60 II (246) since 2017;
- Volvo XC90 II (256) since 2016.
Specifications
| Production years | since 2016 |
| Displacement, cc | 1969 |
| Fuel system | Common Rail |
| Power output, hp | 235 |
| Torque output, Nm | 480 |
| Cylinder block | aluminum R4 |
| Block head | aluminum 16v |
| Cylinder bore, mm | 82 |
| Piston stroke, mm | 93.2 |
| Compression ratio | 15.8 |
| Features | PowerPulse |
| Hydraulic lifters | no |
| Timing drive | belt |
| Phase regulator | no |
| Turbocharging | twin turbochargers |
| Recommended engine oil | 0W-20 |
| Engine oil capacity, liter | 5.6 |
| Fuel type | diesel |
| Euro standards | EURO 5/6 |
| Fuel consumption, L/100 km (for Volvo XC90 2017) — city — highway — combined |
6.7 5.4 5.7 |
| Engine lifespan, km | ~250 000 |
Disadvantages of the D4204T23 engine
The most well-known issue with these diesel engines is the constantly bursting nozzles; this is particularly true for the rubber tubes of the turbine, intercooler, and PowerPulse system; additionally, there are frequently grease leaks from the seals and from beneath the valve cover;
There were recall campaigns for the particulate filter, intake manifold, and EGR; the timing belt needs to be changed every 120,000 kilometers or the valves will bend if it breaks.
