2025 Volvo XC40 vs. the Competition
The Volvo XC40 sets the standard for luxury subcompacts. The sleek Scandinavian style, outstanding standard equipment, and superior driving dynamics make it the segment leader. But this is a segment that's becoming ever more popular, and a number of competitors are available. To demonstrate why the XC40 still reigns supreme, we're taking a closer look at this competition and how it stacks up.
Volvo XC40 VS Mercedes-Benz GLA
 |  | |
|---|---|---|
| 2025 Volvo XC40 B5 Core | VS | 2025 Mercedes-Benz GLA 250 4MATIC |
| $40,650 ✓ | Starting MSRP | $45,000 |
| 247 ✓ | Horsepower | 221 |
| 3,500 pounds ✓ | Towing Capacity | N/A |
| Standard ✓ | Heated Front Seats | Optional |
| Standard ✓ | Integrated Navigation | Optional |
| Standard ✓ | Real-Time Traffic / Weather | Not Available |
| Standard ✓ | Rear Cross Traffic Alert | Not Available |
| Standard ✓ | Traffic Sign Recognition | Optional |
| 12.3 inches ✓ | Driver Information Display | 10.25 inches |
| Standard ✓ | Driver Attention Assist | Not Available |
| 36 months / 36,000 miles ✓ | Included Routine Maintenance | None |
For our first comparison, we're looking at the Mercedes-Benz GLA. Unlike the XC40, the GLA doesn't come with standard all-wheel drive, and as you can see, adding it gives the Mercedes a noticeable price disadvantage. And all of the extra money for the Mercedes certainly doesn't get you any more power, or even as much power as comes with the XC40. Like a lot of subcompacts, the GLA isn't rated for towing, which highlights that the XC40 isn't just rated for towing, it also offers an incredible maximum capacity for this segment.
German luxury brands have never been amazing when it comes to standard equipment, and the lack of standard heated front seats in the GLA is a prime example of this. Integrated navigation is another example, but here, not only is it not included, but even if you shell out the extra money for it, it doesn't come with real-time traffic and weather information, a standard feature on the XC40. And while the GLA, like the XC40, comes with a configurable digital gauge cluster, but the one in the XC40 is bigger and easier to read, which is a pretty important quality. Lastly, Volvo offers routine maintenance free for the first 36 months or 36,000 miles you own the XC40. This is above average for the segment, but it really doesn't need to be in order to beat the zero that Mercedes-Benz gives you.
Volvo XC40 VS Mini Countryman
| |  | |
|---|---|---|
| 2025 Volvo XC40 B5 Core | VS | 2025 Mini Countryman S |
| $40,650 | MSRP | $38,900 |
| Standard ✓ | Mild Hybrid System | Not available |
| 8 ✓ | Transmission Speeds | 7 |
| Standard ✓ | Torque Vectoring | Not available |
| Standard ✓ | Power Adjustable Seats | Optional |
| Standard ✓ | Power Folding Mirrors | Not Available |
| Standard ✓ | Rain-Sensing Wipers | Not Available |
| 12.3-inch driver information display, 9-inch central infotainment touchscreen ✓ | Screens | Single central 9-inch touchscreen, no gauge cluster |
| 8 ✓ | Speakers | 6 |
| Standard ✓ | Over-The-Air Updates | Not available |
Up next is the Mini Countryman, which is built on the same platform as the BMW X1/X2, but is priced and equipped more competitively. Both vehicles are powered by a 2.0-liter turbocharged engine, and power output is nearly identical. Towing capacity is the same as well, so we're going to have to take a closer look to spot the differences. One important difference is the standard mild hybrid system that comes standard on the XC40, and all non-plug-in Volvo models. This, along with the advanced 8-speed automatic transmission in the XC40, is why the XC40 has a slightly quicker 0-60 time despite the nearly identical power output. Throw in torque vectoring, which improves handling and is standard only on the XC40, and it's clear that the Volvo gives you a superior driving experience.
The Countryman might be better equipped than its platform-mates, but better standard equipment than a BMW is a pretty low bar, and the XC40 still stays ahead in this department. This includes features like power-adjustable front seats, rain-sensing wipers, and power-folding mirrors, which are common standard equipment for many luxury models. And while Mini doesn't describe itself as a luxury brand, the price of even the base model Countryman certainly puts it into competition with them. The XC40 comes with a 9-inch central infotainment touchscreen as well as a 12.3-inch configurable digital gauge cluster. The Mini takes inspiration from the original models, and has just one 9-inch circular central display, with no display of any kind in front of the steering wheel. That means your radio controls have to share space with your speedometer. There is some nostalgia/kitch value in this setup, but you have to really committed to the idea to put up with it. The XC40 also comes with over-the-air updates for its infotainment system, including real-time traffic and weather, a major advantage. And lastly, you get more speakers with the Volvo, always a major plus.
Volvo XC40 VS Audi Q3
| |  | |
|---|---|---|
| 2025 Volvo XC40 B5 Core | VS | 2024 Audi Q3 40 Premium quattro |
| $40,650 | MSRP | $37,400 |
| 247 HP / 258 LB-FT TQ ✓ | Horsepower / Torque | 184 HP / 221 LB-FT TQ |
| 26 mpg ✓ | Combined Fuel Economy Rating | 25 mpg |
| 3,500 pounds ✓ | Towing Capacity | N/A |
| 40.9 inches ✓ | Front Leg Room | 40 inches |
| 12.3 inches ✓ | Digital Gauge Cluster | Optional |
| Standard ✓ | Integrated Navigation | Optional |
| Standard ✓ | Wireless Charging | Optional |
| Standard ✓ | Power Folding Mirrors | Not available |
| 36 months / 36,000 miles ✓ | Included Routine Maintenance | None |
For our last comparison, we're looking at the Audi Q3, which comes with a bit of a price advantage over the rest of the segment. That said, it's immediately obvious why. The Q3 is seriously underpowered in base form, by enough that you will very much notice it behind the wheel. And while the difference between the two when it comes to fuel economy isn't huge, the tradeoff for poor power is usually better fuel economy, but Audi manages to come out worse in both categories. There is a more powerful engine option for the Q3, but it still comes up short of the XC40, to the point where even this more powerful option is slower to 60 mph by a full second. It also drops the fuel economy rating to 23 mpg. The XC40 can out-tow the Q3, unsurprisingly, as the Q3 isn't rated for towing at all. The Q3 does offer decent rear legroom, exactly the same amount as the XC40, but the Volvo certainly wins on front legroom.
While the engine is reason enough for the Q3 to be not an especially good deal, the difference in standard equipment really drives the point home. The driver information display in the XC40 is configurable, so you can set up how you want to receive important information, but this is an optional feature in the Q3, with a set of analog gauges coming standard. The Q3 also doesn't come with integrated navigation, which is standard on the XC40. Likewise with wireless charging and power folding mirrors. Lastly, the XC40 comes with 36 months/36,000 miles of complimentary routine maintenance, and once again, the competition offers none.
Winner - Volvo XC40
While compact luxury SUVs are big business, it seems that most luxury brands don't put the same kind of effort into making their subcompact offers competitive. Whether they're underpowered or underequipped, even big names in luxury can't seem to offer anything as well-rounded as the XC40 for anywhere near the same price. When shopping for the best subcompact luxury all-rounder, the Volvo XC40 is the obvious choice.