Volvo XC40 vs Hyundai Palisade Hybrid

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.

Redesigned for 2026, the new Hyundai Palisade brings more than just fresh looks. For the first time, Hyundai is now offering a hybrid powertrain with its big three-row, family SUV. Capable of traveling more than 950 kilometres on a single tank of fuel, the Palisade Hybrid solves one of the only downsides of the market’s best three-row SUV: fuel efficiency. The Palisade Hybrid delivers more than just great fuel economy, though. It’s more powerful than the gas model, and in higher trim levels the Palisade Hybrid feels more luxurious than its competition.

Verdict: Simply put, Hyundai currently sells the best mass-market three-row crossover SUV in North America. The 2026 Hyundai Palisade looks good, drives well, and feels special — and it will keep you away from the gas station, too.