The 2025 Volvo XC40 is a small crossover SUV with just enough high-end details to qualify as a luxury model. Compare it to the Mercedes-Benz GLA- and GLB-Class models plus the BMW X1.
It’s not the freshest design in its segment and its powertrain isn’t all that fuel-thrifty, but the XC40 has personality in spades and offers a pretty good overall value. It’s a 6.5 out of 10 here. (Read more about how we rate cars.)
The XC40 sees a bunch of minor trim and color availability changes this year. The top trim level has been renamed Ultra.
The smallest Volvo crossover SUV has upright styling with plenty of interesting design cues, starting with the hammer-like LED element in its headlights and continuing across its sculpted body to taillights that snake up the rear end. Two-tone paint in many configurations gives it a more youthful, playful look than the rest of the Volvo lineup. Inside, the XC40 has more in common with its brethren, including a vertical touchscreen running Google built-in tech and precious few buttons or knobs.
The gas-fueled XC40 B5 makes use of a grunty but reasonably powerful 2.0-liter turbo-4 rated at 247 hp, sent to all four wheels via an 8-speed automatic transmission. It’s quick enough for comfortable real-world use, and it employs a light-duty mild-hybrid system that helps turn the engine off at stop lights. At just 26 mpg combined, though, the XC40 is hardly a fuel miser.
The all-electric version has been renamed EX40. It’s EPA-rated at 260 miles of range.
XC40s have a zippy feel with quick steering and a somewhat firm ride. The short wheelbase can give them a choppy feel over rough pavement, but they’re nimble and comfortable enough. We suggest sticking with the smallest wheels available on each trim level. The optional 21-inchers wear tires with particularly short sidewalls, which leaves little room for impact absorption.
Inside, the XC40 is more spacious than we expect from a vehicle this small. The front seats are fantastic with a good amount of adjustment and standard heating. Rear-seat riders will find decent space, too. Behind, the 21 cubic-foot cargo area can more than double in capacity when the rear seatbacks are folded down. Nice materials and a wide range of upholstery materials—if not colors—helps elevate this cabin, too.
The XC40 has generally done well in crash tests. All models have automatic emergency braking with pedestrian detection and active lane control, but Volvo restricts its Pilot Assist driver-assistance tech to the top trim level.
How much does the 2025 Volvo XC40 cost?
The base XC40 Core runs $41,945 including a $1,295 destination charge. It’s not lavish, but it comes with a decent 9.0-inch touchscreen, wireless Apple CarPlay and Android Auto compatibility, 18-inch alloy wheels, cloth seats with driver-side power adjustment up front, and parking sensors. Add another $10,000 or so and you’ll net a top-end version with the automaker’s top driver-assistance tech.
Volvo sells the EX40 in a $55,545 Core edition according to listings of cars available for sale now. Volvo’s website lists Plus and Ultra configurations.
Where is the 2025 Volvo XC40 made?
In Ghent, Belgium.
