2023 Volvo XC40

Soft, spacious, and comfortable, the 2023 Volvo XC40 has consistently stood as the anthesis of the more sport-oriented entry-level luxe crossovers from BMW, Audi and Mercedes-Benz. Where they offer the pretense of performance the XC40 stays true to Volvo’s quieter, softer formula. Offering a high-riding stance and tidy dimensions in a handsome Swedish wrapper, the XC40 is a maneuverable, easy-to-park and practical crossover. Despite its luxe pretensions, it also happens to be the cheapest Volvo one can buy.

For the 2023 model year, Volvo has simplified the XC40 lineup, making it (mild) hybrid only, aside from the fully-electric XC40 Recharge model, which we review separately. It can be had in either B4 or B5 guise—different from the old T4 and T5 naming schemes of previous years. Either trim can be had in three levels; Core, Plus, or Ultimate. Front-wheel drive is standard on all trims, with all-wheel drive (AWD) optional.

In both price and physical size, the Volvo XC40 is aimed directly at the heart of the entry-level luxury crossover segment. Its main competitors would be the newly-updated BMW X1, Audi’s Q3, and the Mercedes-Benz GLA-class. Unlike those cars, XC40’s interior is decidedly spacious, and its driving demeanor is explicitly comfort-oriented. That could be the leg up that could entice buyers over competitors with cozier interiors and firmer rides. Also, the XC40’s $36,350 base price undercuts the Germans and puts it in competition with larger, higher-trimmed mainstream crossovers the Kia Sportage or Honda CR-V. 

The Volvo XC40’s demeanor is soft, bordering on relaxed, with a touch of Swedish sumptuousness. There isn’t much driving verve in this experience, but, that isn’t a bad thing. The ride is smooth, and the steering is confident if not sporty. The XC40 is decidedly comfortable, which feels more like a traditional luxury experience than the X1 and GLA, which advertise sportiness over size. The new mild hybrid powertrain never feels short of power, but its observed and EPA-rated fuel economy trails behind competitors. 

Unlike some competitors, the XC40’s design doesn’t have a rakish fastback roofline, so there’s lots of headroom and legroom, though Volvo prioritizes passengers over cargo. The cabin is full of well-fitting, soft-touch plastics, with eco-friendly suede and reclaimed wood accents doting the interior. The sleek, simple and sophisticated 9-inch infotainment screen is the focal point of the interior and looks just as nice as those of the pricier Volvos. Paired with the stylish exterior, the XC40 still manages to look fresh despite not having changed much of the basic design since its 2018 introduction.

For 2023, the XC40’s screen migrates to a new Android-based operating system, that incorporates things like Google Assistant and Google Maps. Of Course, Apple CarPlay and Android Auto are standard. The XC40 includes a bevy of standard safety features, like rear cross-traffic alert, lane keep assist, and collision avoidance that can help steer the vehicle away from danger in certain situationsFundimentally, the Volvo XC40 isn’t new, but its luxurious feel and stylish looks have aged well, making it a top contender for first-time luxury crossover buyers.

Performance: 11/15

The Volvo XC40 simplifies its engine lineup for 2023. Gone are the old T4 and T5 designations, now replaced by new terms: B4 and B5, signifying the XC40’s new mild-hybrid powertrains. The 48V system adds an electric motor to the XC40’s 2.0-liter turbo engine, which can add assistance while driving and acts instead of a traditional starter motor. The XC40 produces 194 horsepower with 221 pound-feet of torque in the B4 trim, or 247 hp and 258 lb-ft of torque in the B5 trim. 

Both engines are mated to an eight-speed automatic but the B4 is front-wheel drive, while B5 models are AWD. 

The electric assist of the mild-hybrid system is seamless, and any turbo lag is imperceptible. The XC40 pulls strong and delivers respectably quick zero-to-60 times. The XC40 has plenty of power for freeway passing, and lots of low-end grunt for quick off-the-line starts. Similarly, the eight-speed automatic is smooth and well-matched to the engine, always adeptly and smoothly picking the correct gear for the driving situation.

Suspension and handling-wise, the XC40 is decidedly comfort-oriented. It has no driving modes, no eco or sport mode, aside from a “firm steering feel” buried in the car’s infotainment system. The steering can be described more as confident rather than sporty, and on the road, there’s not much in the way of driver engagement. This isn’t necessarily a bad thing. Drivers in search of a sporty crossover will probably be disappointed here, but a buyer in search of a comfortable cruiser would likely be pleased by the XC40’s creamy ride quality and easy-to-drive nature.

Fuel Economy: 11/15

The 2023 Volvo XC40 stands out by being one of the few offerings in the segment that comes in standard hybrid form, even if it isn’t a conventional hybrid. Yet, its fuel economy in both B4 and B5 trim lags behind key rivals.

The XC40 is rated for 27 mpg combined (24 city, 32 highway) for the front-wheel drive B4 trim but drops to 16 mpg combined (23 city, 30 highway) on the AWD B5. This lags behind non-hybrid rivals like the BMW X1 and is below the average for small SUVs. Real-world, the XC40 managed about 24 mpg combined in B5 trim. Like most of its rivals, the Volvo XC40 requires premium fuel.

These numbers put the XC40 about 2 to 3 mpg shy of the X1 and GLA but almost a similar amount ahead of the Q3 and Jaguar E-Pace. Lexus’ hybrid UX gets up to 39 mpg combined, but isn’t nearly as spacious as the Volvo. Among more mainstream alternatives, the XC40 returns mileage similar to the Mazda CX-50, but can’t match the CR-V or Sportage hybrids.

Safety & Driver Assistance Tech: 13/15

Volvo has always valued its reputation for safe vehicles, and the XC40 holds true to that tradition. The XC40 has a five-star overall safety rating from the National Highway Traffic Safety Administration (NHTSA) and has repeatedly earned a Top Safety Pick Plus+ rating from the Insurance Institute for Highway Safety (IIHS). While NHTSA’s rating holds for 2023, IIHS’ recently tightened guidelines mean the XC40 doesn’t earn the Top Safety Pick+ badge this year. In addition to a robust crash structure, the XC40 has seven airbags, including one for the driver’s knees.

All XC40s come standard with a bevy of driver assistance technology, like lane keep assist, rear cross-traffic alert, blind spot monitoring, and oncoming lane collision mitigation—where the XC40 can steer itself away from an impending collision with oncoming traffic. The $4,400 Plus package adds park assist, but getting adaptive cruise control means opting for the topmost $8,150 Ultimate package The XC40’s German rivals also make this extra cost, but Honda, Kia and Lexus do not.

Comfort & Room: 13/15

The XC40s seats are comfortable and supportive, soft, and with a good amount of lumbar support and bolstering. The driving position is upright and commanding, and even after long freeway drives, the XC40’s supple ride and supportive seats make for a competent cruise that’s good at staving off driver discomfort and fatigue. The heated seats and heated steering wheel are also some of the hottest we’ve ever experienced. The heated wheel can quickly get almost uncomfortably hot on its highest setting.

At 40.9 inches of front legroom, and 36.8 inches of rear legroom, the XC40 practically matches the BMW X1’s 40.4 inches up front and 37 behind. However, the XC40’s superior seats and more comfortable ride give it an edge over most of its competitors. The Mercedes-Benz GLA-class and Cadillac XT4 have numerically more legroom, though.

Infotainment: 12/15

The 9-inch infotainment screen is the focal point of the XC40’s luxurious interior, and it serves as the main command center for many vehicle functions. Below the recessed tablet-style display is a small strip of hard buttons for volume and track selection, but all other duties are managed by the screen. Despite being the same size and form factor as before, this new screen runs the new Android-based operating system seen in other Volvo and Polestar products.

The XC40’s infotainment is easy to use and responsive. There’s little latency in the screen touches, and everything is very well organized; Volvo has also resisted the urge to bury key features in menus that aren’t easy to adjust or read on the fly.

With the switch to the Android-based operating system, the XC40 gets Google services, like Android Auto and Google Maps, natively integrated with the vehicle’s infotainment system. They’re snappy, and when navigating with the integrated google maps turn-by-turn map directions will can be integrated into the gauge cluster. It’s an easy-to-read, easy-to-use and pleasant experience. 

Cargo Space & Storage: 13/15

The XC40’s cargo area is wide and square-shaped, so it feels larger than it is. With the rear seats in place, however, the XC40’s 16.0 cubic-foot area is numerically smaller than the BMW X1 (25.7 cu-ft) and Audi Q3 (23.7 cu-ft). It does, however, best the Mercedes-Benz GLA-Class (15.4 cu-ft) and almost every comparable compact luxury sedan. With the seats folded, the XC40’s 57.5 cubic-feet of total storage space is larger than all three German alternatives, and well above average overall for the class.

The XC40 has storage pockets in the doors, glovebox, and center console, but nothing particularly stands out as being explicitly more clever than other cars in its segment. 

Style & Design: 8/10

Volvo introduced the XC40 in 2018 and this 2023 facelift hasn’t done much different, stylistically. If it’s not broken, don’t fix it, right? 

Subtle tweaks in the front grille design and revised color choices have kept the XC40 relevant. It still manages to look fresh, and wears its pseudo-minimalist styling language well, in contrast to some of the fussier designs from BMW, Audi, Lexus and Mercedes-Benz. Unfortunately, the eye-catching contrasting roof color has been dropped completely from the mild-hybrid versions of the XC40.

Inside, the interior’s minimalist vibe and Scandinavian design feel distinctly Volvo, if a bit sparse compared to brands like BMW or Mercedes-Benz. The materials, buttons, and switches feel high quality and weighty to use, but there were some minor errors in the cabin where trim pieces didn’t quite fit together correctly. The interior has a restrained use of silver brightwork, and the new crystal gear selector adds a welcome touch of glitz to an interior some may feel could be a bit too cold. 

Is the 2023 Volvo XC40 Worth It? Which XC40 is the Best Value?

Including the $1,095 destination fee, the most basic Volvo XC40 B4 can be had for $37,645. That’s cheaper than the BMW X1 ($40,095) or Audi Q3 ($40,395), and Mercedes-Benz GLA ($38,650). However, except for the GLA-Class, the Audi and BMW come standard with all-wheel-drive, and all three of them have more power. Even in non-4MATIC front-wheel-drive trim, the GLA-class is faster and more economical than the XC40.

Stepping up to the AWD B5 adds $2,000 to the price of the XC40, but the B5 adds more power and still undercuts all of its competitors. However, if you want things like Volvo’s Pro Pilot assist, or adaptive cruise control, that requires the $8,150 Ultimate package, bringing the Volvo XC40 to $47,795 before other options. 

When identically equipped, the XC40 is slightly more expensive than the BMW X1, which would need the Premium Package and Active Driving Assistant Pro to get semi-autonomous driving features like Volvo’s Pro Pilot Assist. 

If you can forgo niceties like the power moonroof, and Pro Pilot Assist, the best XC40 to buy would be the B5 in Core trim. Adding packages to the XC40 does make it a nicer place to be, but price-wise, it can quickly make the XC40 not as competitive as the BMW X1, Audi Q3 or Mercedes-Benz GLA-Class.

How Much Does it Cost to Insure the Volvo XC40?

The XC40’s Insurance costs are similar to many of its competitors. According to our data, a typical 30-year-old female driver with a clean record can expect an average annual premium of $1,970, though this averages all 50 states. Notably, that’s about $800 less than the XC40 Recharge. That compares to $2,270 for the BMW X1, $2,260 for the Audi Q3 and $2,220 for the Mercedes-Benz GLA. To get a more accurate picture of your potential insurance expenses, visit our car insurance calculator.