2025 Volvo XC40

A premium all-wheel-drive hauler ideal for empty nesters and small families, the XC40 blends appealing looks with a nicely finished cabin, impressive driving manners, and plenty of advanced safety technology. Its reasonable price tag makes it an affordable gateway to luxury SUVs, while its tidy size ensures easy parking in crowded inner-city parking garages.

If fully electric vehicles rock your boat, Volvo offers the XC40 Recharge, which we detail separately.

We’ve spent hundreds of hours driving and researching the current collection of subcompact luxury SUVs, including the XC40.

Probably the biggest news for the 2025 XC40 is that power-adjustable headrests are standard across the entire lineup. Volvo also decided to rename last year’s range-topping Ultimate grade Ultra. Less newsworthy is the termination of the Dark interior theme for the entry-level Core trim.

When compared with some of its closest rivals like the Audi Q3 and BMW X1, the XC40 pricing is about average. On the other hand, the Lexus UX costs less, while the Mercedes-Benz GLA costs more.

If you need something a bit bigger with the Volvo badge affixed to it, we suggest the XC60.

The Volvo XC40 features a strong 247-horsepower turbocharged 4-cylinder engine capable of transporting the vehicle and its occupants from zero to 60 mph in a swift 6.1 seconds. That makes it quicker than the Benz GLA. In less extreme applications, we’ve found the XC40 distinguished by a pleasant effortlessness. It’s comfortable on the highway, easy around town, and almost calming relative to something a bit more high-strung like the BMW X1. It may be the smallest and most affordable Volvo SUV, but the XC40 is a true Volvo, through and through.

Fuel Economy

The all-wheel-drive XC40 delivers a government-estimated 26 mpg combined (24 city and 30 highway), which is about average among its peers. You can learn more about the XC40’s fuel economy at the EPA website.

For a subcompact SUV, luxury or otherwise, the 2024 XC40 is spacious. We also think the cabin is well thought-out. It’s packed with quality materials and comes with a 9-inch infotainment touchscreen oriented vertically.

Volvo front seats are renowned for their comfort, and the company doesn’t skimp here. Rear passengers can also be comfortable with 36.1 inches of rear legroom. That’s on the low side for the segment, but our 6-foot editors confirmed having plenty of room.

We’ve found the only area that doesn’t compare quite so well with the competition is luggage space behind the rear seats, which is adequate at 16 cubic feet, but smaller than the Audi Q3 and BMW X1.

For those of us remembering the box-on-wheels styling of Volvo models of yore, today’s sleek, stylish examples are a welcome treat. The XC40 bolsters Volvo’s current advanced design formula with just enough swoops and creases to keep things interesting.

Google built-in
This infotainment operating system includes Google Maps. It can be controlled by voice, activated by saying, “Hey, Google.” Other aspects include over-the-air updates, plus pairs of USB-C ports front and rear. More apps can be added through the Google Play store, including Waze.

Digital driver information display
We appreciate that a lot of manufacturers, especially luxury marques, are fitting 12.3-inch displays where the old dials used to go, contributing to the cabin’s high-tech feel. It’s standard in the XC40.

Pilot Assist
As part of the adaptive cruise control feature, Pilot Assist adds steering corrections to keep the XC40 SUV in its lane. It’s not a hands-free system but we found that it takes some of the fatigue out of long journeys. Pilot Assist/adaptive cruise control is offered as an option in Plus trim or included as standard in the Ultra version.

Harman Kardon 13-speaker/600-watt premium sound system
Offered as an upgrade, Harman Kardon is a well-known and well-respected maker of great-sounding audio systems. It certainly elevates the passenger experience in the XC40.

Removable/folding load floor
This handy item can cover a small storage area underneath. And when a section is folded up, it forms a couple of grocery bag holders. It all seems a bit mundane, sure, but we’d rather have this than have groceries (or worse, take-out food) sliding all over the cargo area. It comes in at the Plus trim level.

Pixel technology headlights with active bending lights
Newly standard with the Ultra trim, these headlights have multiple LEDS for optimum illumination without dazzling anyone else. And the active bending lights follow the direction of the steering.

A turbocharged 2.0-liter 4-cylinder engine endows the 2024 XC40 with 247 hp and 258 lb-ft of torque. An 8-speed automatic transmission sends power to all four wheels.

The presence of an electric motor under the hood makes this drivetrain a mild hybrid, although the most perceptible asset is the smooth engine stop/restart action.

Premium gasoline is required, and the maximum towing capacity is 3,500 pounds — which is impressive in this segment.

4-Year/50,000-Mile Warranty

Volvo’s new-vehicle limited warranty and powertrain coverage is four years or 50,000 miles, whichever happens first. This is common protection among European luxury vehicles.

Safety Ratings

The XC40 earned the top score of Good in three of the four crash tests performed by the Insurance Institute for Highway Safety (IIHS). It also received the maximum 5-star overall score from the National Highway Traffic Safety Administration (NHTSA).