Volvo XC40 vs Toyota Grand Highlander Hybrid

The 2023 Volvo XC40 maintained its distinctive and clean design, characterized by a flat-roofed profile that emphasized its SUV-like appearance. Volvo's commitment to electrification was evident in the hidden tailpipes of gasoline models, while standard fog lights added a touch of practicality. The 2023 updates included pixelated "Thor’s Hammer" headlights, a more angular front bumper, and new wheel designs, though these changes were subtle enough that even current owners might not immediately notice them. The XC40 shared its Compact Modular Architecture (CMA) platform with other Volvo and Polestar models, making it unique in North America for offering a combustion engine option. Inside, the XC40 retained its minimalist design, featuring thin air vents, scalloped door elements, and dual-zone automatic climate control. Leather upholstery was available, with vegan leather for Recharge models. The XC40 Ultimate test vehicle boasted options like a panoramic moonroof and an Orrefors crystal shift knob, though the all-black interior felt somewhat utilitarian.

The 2026 Toyota Grand Highlander Hybrid, on the other hand, pursued a conservative design path reminiscent of the popular RAV4, resulting in a larger version with seating for up to eight and ample cargo space. The interior prioritized function over form, with glossy hard plastics and unlined storage surfaces contributing to its value proposition. The Platinum trim added a layer of luxury, but the overall material quality remained decent. The climate system was user-friendly, featuring large temperature adjustment knobs, while the infotainment interface had room for improvement with its small volume knob and lack of a tuning knob. The Grand Highlander Platinum Hybrid Max, finished in Storm Cloud paint, exuded a sense of understated elegance, though its styling was more about practicality than making a bold statement.

The 2023 Volvo XC40 introduced mild-hybrid powertrains, incorporating a 48-volt electrical system and a 13-horsepower integrated starter generator to enhance fuel economy and smooth power delivery. The B5 models in Canada featured a 2.0-litre turbo-four-cylinder engine producing 247 hp and 258 lb-ft of torque, paired with an eight-speed automatic transmission. Volvo claimed a 0-60 mph time of 6.1 seconds for the B5 models, outperforming competitors like the Audi Q3. The XC40's refinement stood out, offering a composed ride and handling that absorbed bumps with ease. The XC40 Recharge, with its dual electric motors generating 402 hp and 486 lb-ft of torque, accelerated from 0-60 mph in 4.7 seconds and had a range of 359 kilometres. It also boasted a higher towing capacity than the gasoline-powered XC40.

The 2026 Toyota Grand Highlander Hybrid Max prioritized performance with its turbocharged 2.4-litre four-cylinder engine and electronic full-time AWD, delivering 362 net horsepower. This setup allowed the Grand Highlander to accelerate swiftly, aided by a traditional six-speed automatic transmission that avoided the droning typical of CVTs. While the Hybrid Max sacrificed some fuel efficiency, achieving 8.8 L/100 km combined, it offered a towing capacity of 2,268 kilograms. During testing, it averaged 9.1 L/100 km on a balanced city-highway route and 10.1 L/100 km on mountainous terrain. The Hybrid Max's acceleration was smooth and confident, with electric motors eliminating turbo lag. The ride quality was soft and isolating, though undulations in the road could cause some vertical and lateral movement. Handling was secure but limited, with early tire scrub and nose push in corners. Visibility was excellent, aided by available camera systems, though the front camera's frequent screen takeover was a minor annoyance.

The 2023 Volvo XC40, while marketed as an SUV, was better suited for solo commuting than family carpooling. It offered reasonable space among its competitors, with ample rear-seat headroom and average legroom. The XC40 provided 566 litres of cargo space with the rear seats up and 1,328 litres with them folded, though it fell short of rivals like the BMW X1 and Audi Q3. Interior storage was well-designed, with scalloped door panels and a spacious centre console.

The 2026 Toyota Grand Highlander Hybrid excelled in interior space, offering comfortable seating in all three rows and over 2,700 litres of maximum cargo space. The Platinum trim featured a Portobello interior with leather and artificial suede upholstery, adding a touch of luxury. The front and second-row seats were heated and ventilated, providing comfort for long journeys. However, the rear doors' design posed challenges for child seat installation, and their sharp corners could potentially cause dents. The second-row captain's chairs allowed for easy access to the third row, which offered reasonable comfort for adults and tall teens. Cargo space behind the third row measured 586 litres, expanding to 1,640 litres with the third row folded and 2,761 litres with the second row down, nearly matching the Sienna minivan's capacity.

The 2023 Volvo XC40 featured an Android-based infotainment system with Google apps, including Google Maps and Google Assistant. A 12.3-inch digital instrument cluster and a 9-inch touchscreen were standard, with a 13-speaker Harman Kardon audio system available in the Ultimate trim. The infotainment experience was visually pleasing, though users preferring Apple devices might find the Google integration less satisfying. The minimalist design meant most controls were accessed through the touchscreen, which could be cumbersome for certain functions.

The 2026 Toyota Grand Highlander Hybrid offered a 12.3-inch touchscreen infotainment system across all trims, with a 12.3-inch digital instrumentation panel in Limited and Platinum trims. The system supported wireless Apple CarPlay, Android Auto, and various Toyota Connected Services. While the infotainment system was user-friendly, it lacked the ability to display multiple main-menu screens simultaneously, and the low-contrast font could be challenging to read. The digital voice assistant responded accurately to commands, enhancing the overall experience. The Platinum trim included features like a head-up display, digital rear-view mirror, and JBL premium audio system, delivering impressive sound quality.

The 2023 Volvo XC40 boasted a comprehensive list of standard safety features, including lane-keep assist, automatic emergency braking, and blind-spot monitoring. Upgrading to higher trims added features like adaptive cruise control and Pilot Assist, though the latter offered limited functionality compared to similar systems from non-luxury brands. The XC40 received top safety ratings from the NHTSA and IIHS, though it fell short in the updated side-impact test.

The 2026 Toyota Grand Highlander Hybrid came equipped with Toyota Safety Sense 3.0, offering a range of standard safety features and driver assistance technologies. While the safety tech operated accurately, the Proactive Driving Assist system was found to be more irritating than helpful. The Grand Highlander earned a five-star overall safety rating from the NHTSA but missed the IIHS Top Safety Pick due to "Acceptable" ratings for headlight performance and small overlap frontal-impact protection.