Volvo XC40 vs Toyota Grand Highlander

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.

If you have more than a couple of kids, chances are good that a regular Toyota Highlander won’t be big enough for all your needs. For many shoppers like you, the Kia Telluride and its corporate cousin, the Hyundai Palisade, have become the obvious choices. Those three-row crossovers are newer, bigger, and incredibly nice to drive.

But now there’s a new Highlander. A bigger Highlander. A Grand Highlander. This all-new midsize SUV takes a popular nameplate (which, don't worry, isn’t going anywhere) and adds a little extra space. But what separates the Grand Highlander from the field is the availability of not one, but two different hybrid powertrains. This all-new model offers plenty of space, good fuel efficiency, and the automaker’s sterling reputation for reliability. So, is the 2024 Grand Highlander an immediate three-row SUV threat to the hot-selling Kia Telluride?