Audi Q3 vs Volvo XC40

The 2021 Audi Q3 is a subcompact luxury SUV. Small crossovers and SUVs are seemingly taking over the automotive world, and even among this extremely crowded field, the Q3 is a standout. Despite having “SUV” in the name, the expectation with these vehicles is that they drive as comfortably and are as efficiently as a sedan. The Q3 delivers on this with a refined ride and standard driver assistance features, as well as helpful-in car tech.

The Q3 first entered the North American market for the 2013 model year. The redesigned second-generation model arrived for 2019 and is still on sale today. For the 2021 model year, the Q3 gains additional high tech safety features and loses its top-tier Prestige trim. You can now get the features from this trim as options packages.

In Volvo speak, “40” denotes an entry-level model. While the Swedish automaker no longer rosters the S40 sedan or V40 wagon in the United States, the XC40 subcompact crossover remains to compete with the likes of the Audi Q3, BMW X1, Lexus UX, and Mercedes-Benz GLA-Class for aspiring luxury-car owners’ dollars.

The XC40 was unveiled in 2017, arriving in the U.S. as a 2019 model, and 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 B4 front-wheel drive (FWD) and B5 all-wheel drive (AWD) drivetrains. This Volvo XC40 review is based on the Ultimate trim in B5 AWD spec.