Volvo's 2026 XC40 still feels premium after all these years

The premium compact SUV segment is among the most competitive on the market right now, full of desirable choices from every major manufacturer. Buyers have a choice of everything from straight internal combustion to fully electric powertrains, and freshness is key.

Pity the poor XC40, then, which got a facelift in 2023 but is still the same basic SUV that debuted last decade. It was a revelation when it was released, a car that blew me away when I first drove it in 2017. It offered far more style and presence than its petite dimensions would seemingly afford. But eight years on, can it still compete? Somehow, yes, it can.

Options and configurations

Volvo breaks up the XC40 into three basic trim levels, starting at the Core for around $41,000, then Plus at just over $45,000, and finally the Ultra for around $52,000. From there, you can choose between two engine drivetrain options, both hybrids. First is the front-drive B4 with 194 horsepower. The other is the all-wheel drive B5 with 247 horsepower, which costs an extra $2,700.

The car you see here, the one that Volvo loaned me for a week of testing, is an Ultra trim with the B5 engine. That Ultra trim means niceties like a panoramic glass roof and a Harman Kardon Premium sound system, but it also means a somewhat dear asking price of $57,040 as configured, including the $1,295 destination charge.

Design and Interior

That is a lot of money when you can get something like a Subaru Crosstrek for about $27,000, but take one look at the XC40 and it definitely oozes premium design. Even if that exterior is extremely familiar at this point, it still looks sharp and sophisticated.

That feeling continues through to the interior. The materials here aren't quite as nice as those found on Volvo's higher-end machines, like the XC90, but it's not far off, certainly, from an appearance standpoint. The Blond Leather interior here is fresh and clean, and I love the way the wood inlay bisects the dashboard, its subtle silver hue matching the XC40's trademark vertical vents.

Some of the rest of the materials are a bit basic, with some hard plastics on the lower parts of the dash, but the door pockets and even the central tunnel in the SUV are lined with a dense carpeted material that gives everything a tidy look and helps reduce rattling of whatever you put in there.

Front seats are firm but well-shaped and nicely adjustable, including power lumbar support. Rear seats, too, are quite comfortable and there's plenty of headroom, but legroom is a bit limited as you might expect given the dimensions of this thing. Still, two adults can fit back there without too many complaints, or three for a shorter journey.

Those rear seats are heated, too, and there's a pair of USB-C ports to keep devices out back charged. Another two are found in the front console, plus a wireless phone charger, too.

Touchscreen tech

The primary interface for the 2026 Volvo XC40 is the nine-inch, vertically oriented touchscreen, which runs Android Automotive. That means you have Google Maps, YouTube Music, and other elements of the Alphabet ecosystem built right into your car, even if you forget your smartphone.

That also enables a comprehensive voice assistant thanks to Google Assistant, which can quickly and easily find you just about any type of restaurant or other attraction, or enter any address you like by voice. It can also handle some commands for car functions, like turning on the seat heaters. It was flummoxed when I said "I'm cold," though, and when I said "I'm hungry," it tried to play an album on YouTube Music called "I'm Hungry" instead of finding me some local grub.

Media is played back through a 13-speaker, 660-watt Harman Kardon sound system that's quite good, if perhaps a bit bass-heavy given the size of the machine. Still, it did a great job playing every track I threw at it.

That central touchscreen is paired with a 12.3-inch digital gauge cluster, which can also show you your current navigation route. Or, you can disable that view. Sadly, those are your only two options. Some extra customization here would be very appreciated.

In terms of physical controls, there's not much left. You'll control everything from the front seat heaters to the steering feel through menus on that touchscreen, but Volvo thankfully didn't get rid of the big, chunky volume knob with its integrated play/pause button beneath the touchscreen, and I hope it never does.

Behind the wheel

This XC40's 2.0-liter turbocharged engine offers performance that is perfectly respectable if far from invigorating. Step on the accelerator hard, and there's a moment's hesitation as that turbocharger spins itself up to speed. You can hear it charging up somewhere under the dashboard as the XC40's acceleration starts to climb.

At maximum thrust, the B5 XC40 is quick enough to get you ahead of traffic or cleanly pass on a two-lane road, but it's not going to astonish or amaze. Likewise, the eight-speed transmission does a great job of slipping smoothly from one gear to the next, but it isn't there to give lightning-fast shifts.

The XC40's steering is relaxed, but the suspension is somewhat on the firm side, delivering a subtly more engaging feel than many other players in this segment. That does impart some occasional harshness on broken asphalt, most problematic on extended highway stretches of tired concrete. Go for the standard 20-inch wheels, rather than the optional 21s on this car, and you'll likely be a bit more comfortable — plus $4,000 richer.

That said, overall ride quality on the XC40 crossing everyday bumps or railroad crossings is good, and again, just sprightly enough to be a little bit fun. The B5's all-wheel drive should ensure that it does well in all four seasons, too.

In terms of efficiency, the B5 AWD is rated for 23 mpg in the city, 30 on the highway, and 26 mpg combined per the EPA. In my mixed testing, I matched that with 26 mpg. It's worth pointing out that the XC40 requires premium fuel, which will drive up your consumption costs.

And when it comes to safety tech, the XC40 has a comprehensive suite of active safety features, including blind spot monitoring, driver monitoring, active lane centering, and adaptive cruise. The adaptive cruise control worked flawlessly for me on an extended road trip, but the lane centering system was a bit more problematic. While it did a great job in ideal conditions, it had a tendency to try to veer to the right whenever I approached an exit in the right lane.

Also, it was constantly prompting me to put my hands on the wheel even when they most definitely were, which left me having to wiggle the steering wheel every minute or so. That's far from a luxurious driving experience, especially when some of the competition offer hands-off driving on the highway.

Wrap-up

Volvo hasn't given the XC40 a substantial re-do since its introduction in 2017 and it's all starting to feel maybe a little too familiar, but honestly it still holds its own for buyers who are focused on design and overall vibe more so than the latest driver assistance tech or the sportiest performance.

That certainly means this is not a mainstream car, but then it never has been. The XC40 is a premium choice with a premium price, requiring its buyers to sacrifice in a few other areas as well. But this SUV's posh look and feel definitely make it feel worth the splurge.