2025 Volvo XC40 vs. the Competition

Loved by critics and customers alike, the Volvo XC40 sets the bar for the compact luxury SUV segment. The spacious interior and superior driving dynamics make for an attractive combination, but the XC40 isn’t the only luxury compact SUV out there, and you might be wondering what it is that really sets it apart from the competition. We think this guide will help explain what makes the XC40 the best choice when shopping for a compact luxury SUV

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Volvo XC40 VS Mercedes-Benz GLB

2025 Volvo XC40 Core	VS	2025 Mercedes-Benz GLB 250 SUV
$41,945 ✓	MSRP	$45,800
247 HP / 258 LB-FT TQ ✓	Horsepower/Torque	221 HP / 258 LB-FT TQ
6.1 seconds ✓	0-60 Time	6.9 seconds
All-wheel drive ✓	Drivetrain Layout	Front-wheel drive
3,500 pounds ✓	Towing Capacity	N/A
12.3 inches ✓	Digital Gauge Cluster	10.25 inches
Standard ✓	Integrated Navigation	Optional
Standard ✓	Cross Traffic Alert	Optional
Standard ✓	Traffic Sign Information	Optional
36 months / 30,000 miles ✓	Included Maintenance	N/A

For our first comparison, we’re looking at the Mercedes-Benz GLB. Both vehicles are powered by a 2.0-liter turbocharged four-cylinder engine mated to a mild hybrid system and an 8-speed automatic transmission. The engine in the Volvo makes more horsepower, and even though both vehicles have the same torque rating, the XC40 hits 60 mph a lot quicker. So although the Mercedes costs nearly $4,000 more, that extra money doesn’t translate to better performance, and it doesn’t deliver all-wheel drive either, which is standard on the XC40, but adds a couple thousand more to the price of the already more expensive GLB. And while the XC40 has an above-average towing capacity for this segment, we really can’t compare the GLB as it isn’t rated for towing at all.

Both vehicles have a configurable digital gauge cluster, but once again, the Volvo is just a bit better, with a display that’s two inches larger for improved visibility. You also get standard integrated navigation with the XC40, but that will cost you extra on the GLB. Ditto for safety features like the cross traffic alert and traffic sign information. Lastly, the XC40 comes with routine maintenance included for the first 36 months or 30,000 miles that you own the vehicle. Like with towing capacity, this is above average, but it really doesn’t need to be to beat the GLB, which doesn’t come with any maintenance included.

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Volvo XC40 VS Lexus UX

2025 Volvo XC40 Core	VS	2025 Lexus UX 300h AWD
$41,945	MSRP	$39,285
247	Horsepower	196
6.1 seconds ✓	0-60 Time	7.9 seconds
3,500 pounds ✓	Towing Capacity	N/A
Standard ✓	Heated Seats	Requires higher trim
Standard ✓	Integrated Navigation	Requires higher trim
Standard ✓	Rain Sensing Wipers	Requires higher trim
Standard ✓	Wireless Charging	Optional
8 ✓	Speakers	6
36 months / 30,000 miles ✓	Included Maintenance	12 months / 10,000 miles

Up next is the Lexus UX, which doesn’t come with standard all-wheel drive, but unlike the Mercedes, the Lexus actually remains less expensive than the Volvo even after we add the AWD option, which we’ve done here for more of an apples-to-apples comparison, since the XC40 has AWD as standard equipment. Unfortunately, what isn’t equivalent is the power output you get from the UX, which is nearly 2 seconds slower to 60 mph than the XC40 – with one of the slowest 0-60 times in the entire compact luxury SUV segment. Unsurprisingly, with just 196 horsepower, the UX also isn’t rated for towing.

The UX does have a $2,500 price advantage, even with the AWD option added. Initially,that sounds good, but a quick look at the standard features shows that you get very little for that money. In fact, a lot of the features which come standard on the XC40, things like heated front seats, integrated navigation, and rain-sensing wipers, aren’t even available as options on the base trim of the Lexus. A wireless charger is available as an option, but the XC40 comes with that as standard equipment. The XC40 has a better standard stereo, and if you upgrade, the Volvo offers a 13-speaker Harman Kardon premium system, compared with a 10-speaker generic system offered on the top trim of the UX. Lastly, the Lexus does offer included maintenance, for your first 12 months or 10,000 miles of ownership. That’s nice, but the XC40 comes with triple that, adding more expense for the Lexus over time.

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Volvo XC40 VS BMW X1

2025 Volvo XC40 Core	VS	2025 BMW X1 xDrive28i
$41,945	MSRP	$41,350
247	Horsepower	241
6.1 seconds ✓	0-60 Time	6.2 seconds
3,500 pounds ✓	Towing Capacity	N/A
Standard ✓	Power Folding Mirrors	Not available
Standard ✓	Real-Time Traffic / Weather	Not available
Optional ✓	Heated Rear Seats	Not available
Standard ✓	Driver’s Seat Lumbar Support	Optional
Standard ✓	Auto-Dimming Rearview Mirror	Optional
Standard ✓	Wireless Charger	Optional

Last up, we have the BMW X1, and this competitor is certainly the closest to the XC40 in price, and it nearly matches the Volvo in performance. It even comes with the same 36 months of included maintenance, but the similarities soon give way to a long list of features that the X1 either lacks or that BMW charges extra for. This includes towing capacity, which you might think the X1 is capable of, given how close it comes to the power output of the XC40, but it isn’t rated for towing at all by BMW.

Getting into the details of the list of standard equipment shows that BMW is missing many features entirely, like power-folding exterior mirrors. And even though the X1 does include integrated navigation, it doesn’t include real-time traffic and weather information like the Volvo does. Similarly, BMW includes heated front seats, but doesn’t even offer heated rear seats as an option. Speaking of seats, the driver’s seat in the XC40 comes with 4-way lumbar support, something you’ll have to pay extra for in the X1. You’ll also have to pay extra for an auto-dimming rearview mirror or a wireless charger with the BMW, but not on the Volvo. So maybe that price isn’t all that close after all.

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