Toyota Highlander Hybrid vs Volvo XC40
Overview | |
MSRP$40,620 | MSRP$36,350 |
Listings300 | Listings445 |
Ratings & Reviews | |
User Reviews | User Reviews |
Expert reviews5.7 out of 10 | Expert reviews7.5 out of 10 |
Pros
Cons
| Pros
Cons
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Reviews SummaryThe Toyota Highlander Hybrid SUV’s popularity is understandable, given the midsize, three-row crossover's impressive fuel economy rating. However, generally speaking, the 2023 Toyota Highlander is not what it should be, and specifically, the Highlander Hybrid doesn’t meet efficiency expectations. Unfortunately, this Toyota faces few rivals. But the Kia Sorento Hybrid and Plug-in Hybrid models are worthy alternatives. | |
Reviews SummaryIn Volvo speak, “40” denotes an entry-level model. While the Swedish automaker no longer rosters the S40 sedan or V40 wagon in North America, the XC40 subcompact crossover remains to compete with the likes of the Audi Q3, the BMW X1, the Lexus UX, and the Mercedes-Benz GLA for aspiring luxury-car owners’ dollars. The XC40 was unveiled in 2017, arriving as a 2019 model, and it hasn’t undergone a redesign since. An all-electric Volvo XC40 Recharge variant joined the lineup as a 2021 model. Volvo’s other current EV, the C40 Recharge, is also broadly similar to the XC40 models, but with a coupe-like body style. For 2023, Volvo gave the XC40 several notable updates, including new mild-hybrid powertrains, revised styling, and the Android-based infotainment system previously seen on the XC40 Recharge and other Volvo models. The mild-hybrid lineup includes base Core, mid-level Plus, and top Ultimate trim levels, with standard B5 all-wheel drive (AWD) drivetrains (the B4 front-wheel drive, or FWD, version offered in the US is not available in Canada). This Volvo XC40 review is based on the Ultimate trim in B5 AWD spec. | |
No video found | No video found |
Popular Features & Specs | |
Engine2.5L 243 hp I4 Hybrid | Engine2.0L 194 hp I4 |
Drive TrainFWD | Drive TrainFWD |
Seating Capacity8 | Seating Capacity5 |
Horsepower | Horsepower194 hp @ 4800 rpm |
EV Battery Capacity1.9 kWh | EV Battery Capacity |
MPG City36 | MPG City24 |
MPG Highway35 | MPG Highway32 |
Engine | |
Engine Name2.5L 243 hp I4 Hybrid | Engine Name2.0L 194 hp I4 |
Torque | Torque221 lb-ft @ 1500 rpm |
Horsepower | Horsepower194 hp @ 4800 rpm |
DrivetrainFWD | DrivetrainFWD |
Fuel Economy | |
EV Battery Capacity1.9 kWh | EV Battery Capacity |
MPG City36 | MPG City24 |
MPG Highway35 | MPG Highway32 |
Interior | |
Leather Seats | Leather SeatsStandard |
Seating Capacity8 | Seating Capacity5 |
Key Features | |
Navigation System | Navigation SystemStandard |
Safety | |
Front Crash Overall4 | Front Crash Overall5 |
Side Crash Overall5 | Side Crash Overall5 |
Dimensions & Capacity | |
Cargo Space16.0 cu ft | Cargo Space21.7 cu ft |
Curb Weight4330 lbs | Curb Weight3726 lbs |
Height68.1 in | Height65.2 in |
Length194.9 in | Length174.8 in |
Width76.0 in | Width80.1 in |
Wheelbase112.2 in | Wheelbase106.4 in |
Maximum Payload1495 lbs | Maximum Payload925 lbs |
Number of doors4 | Number of doors4 |
Maximum Towing Capacity3500 lbs | Maximum Towing Capacity3500 lbs |
Overview | ||
MSRP | $40,620 | $36,350 |
Listings | ||
Ratings & Reviews | ||
User reviews | ||
Expert reviews | 5.7 out of 10Read full review | 7.5 out of 10Read full review |
Pros & cons | Pros
Cons
| Pros
Cons
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Summary | The Toyota Highlander Hybrid SUV’s popularity is understandable, given the midsize, three-row crossover's impressive fuel economy rating. However, generally speaking, the 2023 Toyota Highlander is not what it should be, and specifically, the Highlander Hybrid doesn’t meet efficiency expectations. Unfortunately, this Toyota faces few rivals. But the Kia Sorento Hybrid and Plug-in Hybrid models are worthy alternatives. | In Volvo speak, “40” denotes an entry-level model. While the Swedish automaker no longer rosters the S40 sedan or V40 wagon in North America, the XC40 subcompact crossover remains to compete with the likes of the Audi Q3, the BMW X1, the Lexus UX, and the Mercedes-Benz GLA for aspiring luxury-car owners’ dollars. The XC40 was unveiled in 2017, arriving as a 2019 model, and it hasn’t undergone a redesign since. An all-electric Volvo XC40 Recharge variant joined the lineup as a 2021 model. Volvo’s other current EV, the C40 Recharge, is also broadly similar to the XC40 models, but with a coupe-like body style. For 2023, Volvo gave the XC40 several notable updates, including new mild-hybrid powertrains, revised styling, and the Android-based infotainment system previously seen on the XC40 Recharge and other Volvo models. The mild-hybrid lineup includes base Core, mid-level Plus, and top Ultimate trim levels, with standard B5 all-wheel drive (AWD) drivetrains (the B4 front-wheel drive, or FWD, version offered in the US is not available in Canada). This Volvo XC40 review is based on the Ultimate trim in B5 AWD spec. |
Video | No video found | No video found |
Popular Features & Specs | ||
Engine | 2.5L 243 hp I4 Hybrid | 2.0L 194 hp I4 |
Drive Train | FWD | FWD |
Seating Capacity | 8 | 5 |
Horsepower | 194 hp @ 4800 rpm | |
EV Battery Capacity | 1.9 kWh | |
MPG City | 36 | 24 |
MPG Highway | 35 | 32 |
Engine | ||
Engine Name | 2.5L 243 hp I4 Hybrid | 2.0L 194 hp I4 |
Torque | 221 lb-ft @ 1500 rpm | |
Horsepower | 194 hp @ 4800 rpm | |
Drivetrain | FWD | FWD |
Fuel Economy | ||
EV Battery Capacity | 1.9 kWh | |
MPG City | 36 | 24 |
MPG Highway | 35 | 32 |
Interior | ||
Leather Seats | Standard | |
Seating Capacity | 8 | 5 |
Key Features | ||
Navigation System | Standard | |
Safety | ||
Front Crash Overall | 4 | 5 |
Side Crash Overall | 5 | 5 |
Dimensions & Capacity | ||
Cargo Space | 16.0 cu ft | 21.7 cu ft |
Curb Weight | 4330 lbs | 3726 lbs |
Height | 68.1 in | 65.2 in |
Length | 194.9 in | 174.8 in |
Width | 76.0 in | 80.1 in |
Wheelbase | 112.2 in | 106.4 in |
Maximum Payload | 1495 lbs | 925 lbs |
Number of doors | 4 | 4 |
Maximum Towing Capacity | 3500 lbs | 3500 lbs |
The 2023 Volvo XC40 maintained its distinctive and clean design, characterized by a flat-roofed profile that was quintessentially SUV-like. Volvo's commitment to electrification was evident in the hidden tailpipes of gasoline models, while fog lights were standard on Plus and Ultimate trims. Updates for 2023 included a pixelated design for the "Thor’s Hammer" headlights, a more angular front bumper, and new wheel designs. The XC40 shared its Compact Modular Architecture (CMA) platform with the Volvo C40 Recharge and Polestar 2, making it the only CMA-based model in North America available with a combustion engine. Inside, the XC40 featured a minimalist design with thin air vents, dual-zone automatic climate control, and optional leather upholstery. The Ultimate trim offered luxurious options like a panoramic moonroof and an Orrefors crystal shift knob, though the all-black interior felt somewhat utilitarian.
In contrast, the 2023 Toyota Highlander Hybrid was priced at just over $50,000 for the base Hybrid LE, with AWD standard in Canada. The Highlander Hybrid's appearance remained largely unchanged, save for a new Cypress Green paint colour. The design was bold, with exaggerated forms and a visually aggressive stance. Inside, the Highlander Hybrid featured a super-sized cabin with large air vents, a 12.3-inch touchscreen, and oversized climate control knobs. However, the interior's mismatched textures and tones, along with reflections from the display, made it visually overwhelming. The quality of materials was questionable, with controls that felt inexpensive and storage areas that were unlined, leading to potential noise issues. Despite these drawbacks, the Highlander Hybrid was notably quiet on the road, a testament to Toyota's focus on cabin noise reduction.


The 2023 Volvo XC40 introduced mild-hybrid powertrains, featuring a 48-volt electrical system and a 13-horsepower integrated starter generator. The B5 models in Canada were equipped with a 2.0-litre turbo-four-cylinder engine, producing 247 hp and 258 lb-ft of torque, paired with an eight-speed automatic transmission. The B5 could accelerate from zero to 60 mph in 6.1 seconds, offering a refined driving experience with smooth power delivery. The XC40 Recharge, with its two electric motors, delivered 402 hp and 486 lb-ft of torque, achieving zero to 60 mph in 4.7 seconds and a range of 359 kilometres. The Recharge also boasted a higher towing capacity of 2,000 kg compared to the B5 AWD model's 1,587 kg.
The 2023 Toyota Highlander Hybrid combined a 2.5-litre Atkinson-cycle four-cylinder engine with two electric motor-generators, producing 243 combined horsepower. The electric motors assisted in acceleration and allowed for low-speed electric-only driving. However, the gas engine's 175 lb-ft of torque limited high-speed passing power. The Highlander Hybrid could tow up to 1,588 kg, but its performance in mountainous terrain was underwhelming, with brake fade being a concern. The SUV offered Eco, Normal, and Sport driving modes, with AWD and a Trail mode for light off-road conditions. Fuel economy was a focus, with a Predictive Efficient Drive system, though real-world consumption was higher than expected at 8.2 L/100 km. The Highlander Hybrid's driving experience was uninspiring, with soft suspension and a CVT that detracted from engagement.
The 2023 Volvo XC40, while marketed as an SUV, was more suited for solo commuting than family carpooling. It offered reasonable space, with competitive rear-seat headroom and average legroom. Cargo capacity was 566 litres with the rear seats up and 1,328 litres with them folded, less than some competitors. Interior storage was well-designed, with large door panel carve-outs and a spacious centre console.
The 2023 Toyota Highlander Hybrid was designed for family life, seating seven or eight depending on the configuration. Most models featured second-row captain’s chairs, with the third row best for occasional use. Standard features included three-zone climate control and heated front seats, with additional comforts in higher trims. The second-row seats were spacious and comfortable, while the third row was cramped and difficult to access. The Highlander offered 453 litres of cargo space behind the third row, expanding to 1,370 litres with the seats folded, and a maximum of 2,387 litres with the second row down. However, the storage console design was complex, and the all-weather cargo mat compromised utility.
The 2023 Volvo XC40 featured an Android-based infotainment system with Google apps, a 12.3-inch digital instrument cluster, and a 9-inch touchscreen. The B5 Ultimate trim included a 13-speaker Harman Kardon audio system and USB-C ports for each row. The system's graphics were pleasing, but the lack of analog controls made some functions cumbersome.
The 2023 Toyota Highlander Hybrid introduced new technology, with upper trims receiving a 12.3-inch digital instrumentation display and a new Toyota Audio Multimedia system. The Limited trim featured a 12.3-inch touchscreen with over-the-air updates, wireless Apple CarPlay and Android Auto, and SiriusXM. Connected services included Remote Connect and Drive Connect, with an Intelligent Assistant and cloud-based navigation. The test vehicle also had a head-up display and an 11-speaker JBL sound system. While the platform was user-friendly, the graphics lacked contrast, making visibility challenging.
The 2023 Volvo XC40 was equipped with a comprehensive suite of standard safety features, including lane-keep assist, automatic emergency braking, and blind-spot monitoring. Higher trims added features like adaptive cruise control and Pilot Assist. The XC40 received top safety ratings from the IIHS and NHTSA, though it had an "Acceptable" rating in the updated side-impact test.
The 2023 Toyota Highlander Hybrid came with Toyota Safety Sense 2.5+, offering adaptive cruise control, automatic emergency braking, and lane-keeping assist. Higher trims added parking sensors and a surround-view camera. The Highlander Hybrid received excellent crash-test ratings from both the IIHS and NHTSA, with Safety Connect providing additional emergency assistance features.
CarGurus highlights

According to CarGurus experts, the overall rating for the 2023 Volvo XC40 is 7.5 out of 10, while the 2023 Toyota Highlander Hybrid scores 5.7 out of 10. Based on these ratings, the Volvo XC40 is the recommended choice, offering a more refined driving experience, superior interior quality, and a comprehensive suite of safety features.
Choose the 2023 Volvo XC40 if:
- You prioritize a refined driving experience with smooth power delivery and high levels of comfort.
- You value a minimalist interior design with high-quality materials and thoughtful storage solutions.
- You seek a comprehensive suite of safety features and top safety ratings.
Choose the 2023 Toyota Highlander Hybrid if:
- You need a family-friendly SUV with seating for up to eight and ample cargo space.
- You prioritize fuel efficiency and are willing to sacrifice some driving engagement for better economy.
- You want a vehicle with a robust suite of standard safety features and excellent crash-test ratings.
CarGurus highlights

According to CarGurus experts, the overall rating for the 2023 Volvo XC40 is 7.5 out of 10, while the 2023 Toyota Highlander Hybrid scores 5.7 out of 10. Based on these ratings, the Volvo XC40 is the recommended choice, offering a more refined driving experience, superior interior quality, and a comprehensive suite of safety features.
Choose the 2023 Volvo XC40 if:
Shop Now- You prioritize a refined driving experience with smooth power delivery and high levels of comfort.
- You value a minimalist interior design with high-quality materials and thoughtful storage solutions.
- You seek a comprehensive suite of safety features and top safety ratings.
Choose the 2023 Toyota Highlander Hybrid if:
Shop Now- You need a family-friendly SUV with seating for up to eight and ample cargo space.
- You prioritize fuel efficiency and are willing to sacrifice some driving engagement for better economy.
- You want a vehicle with a robust suite of standard safety features and excellent crash-test ratings.

By: CarGurus + AI
At CarGurus, our team of experienced automotive writers remain at the heart of our content operation, conducting hands-on car tests and writing insightful guides that are backed by years of industry experience. To complement this, we are harnessing AI to make our content offering more diverse and more helpful to shoppers than ever. To achieve this, our AI systems are based exclusively on CarGurus content, ratings and data, so that what we produce is both unique to CarGurus, and uniquely helpful to car shoppers.






































