2023 Volvo XC40

The 2023 Volvo XC40 is perhaps the most visually appealing subcompact luxury SUV available. It's boxy, well-proportioned and has that signature Swedish design we love. Volvo has given the XC40 a boost this year with a number of updates, making previously frugal powertrains a little more fun to live with.

While the XC40 isn't the largest in the segment, it's also not the smallest. This, and its utilitarian proportions, make it more useful than it may appear from the outside.

What does the interior and technology inside the XC40 look like?

Volvo interiors are very neat and architectural in terms of design, and the XC40 is no exception, even if its specific design doesn't quite follow other models. It is pleasantly simple, based on comfortable, high-quality materials and Swedish design. Textile upholstery is standard, and luxury leather is available. In addition, the XC40 Recharge offers eco-friendlier non-leather alternatives such as Volvo's "Microtech" textile or wool blend.

One of the things that sets the XC40 apart from its siblings (and competitors) is the clever design of the center console. It features plenty of large, convenient compartments for storing, securing and charging devices, as well as useful cup holders and ample storage under the armrests. There is even a small compartment specifically designed for a trash can. It's clear that a lot of care and attention has gone into the XC40.

There's plenty of technology here too, from the standard 9-inch vertically oriented Google-powered infotainment screen to the 12-inch digital instrument cluster. We appreciate the inclusion of technology, and even if you don't want to go all Google apps, Apple CarPlay works just as well with this infotainment system. However, the use of built-in Google Maps (they even show up on the dashboard) as a navigation system and Google Assistant for voice commands make this infotainment system feel more like an extension of a smartphone.

How spacious is the XC40?

The back seat is a little small for larger adults, but that's par for the course for most cars in this segment. The XC40 falls into the category of the smallest subcompact luxury crossovers, where it faces both smaller and larger rivals - the larger ones being the BMW X1 and Mercedes-Benz GLB. Although the XC40 is only a midsize car in its segment, its boxy shape and clever ergonomics make it quite utilitarian. The rear headroom is quite spacious.

The XC40's cargo space behind the second row is small, but it's tall, and the large opening makes it easy to load things into. Volvo also gets creative with the flooring: it can be raised and folded into separate sections to prevent items from falling on top of each other. Maximum cargo capacity is 57.5 cubic feet, which is more than almost all competitors. The Mercedes GLB is most notable for being able to carry more stuff. If you choose the Recharge package, there is a small trunk for additional storage.

What are the XC40's fuel economy and power ratings?

Three powertrains are available for the 2023 XC40: B4, B5 and Recharge.

The XC40 B4 is powered by a 2.0-liter turbocharged hybrid four-cylinder engine and is only available with front-wheel drive. It produces 194 horsepower and 221 pound-feet of torque. While it's not as spirited as the B5, it offers excellent fuel economy: 24 mpg city, 32 mpg highway, and 27 mpg combined. Volvo claims it goes from zero to 60 mph in 8.1 seconds, which is slow for a luxury car.

To get all-wheel drive, you need to upgrade to the XC40 B5. It also has a 2.0-liter turbocharged four-cylinder engine, but it produces 247 hp. and 258 lb-ft of torque. Fuel economy for the extra power and all-wheel drive is negligible - 23 mph city, 30 - highway, 26 - combined. This engine takes a full 2 seconds off your 0-60 time, which you'll definitely notice.

The XC40 Recharge features a 78-kilowatt-hour battery pack and an identical electric motor on each axle to provide all-wheel drive. It produces 402 hp. and 486 lb-ft of torque, which is as big a performance improvement as it sounds—0-60 time drops to 4.7 seconds. The EPA-estimated range is 223 miles. The maximum charging speed is 150kW on a suitable DC fast charger, which Volvo says is enough to charge the car 10-80% in 37 minutes.

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