Volvo XC40 vs BMW X3

With alluring proportions, unusual design, and impressive technology, the 2025 X3 seems like a bargain at its sticker price. However, this BMW is not about traditional luxury, so set those expectations aside. Instead, it is a study in minimalism, with simple forms, reductive controls, and Germanic austerity. Nevertheless, its comfort, technology, and driving dynamics make the X3 rewarding, and BMW provides plenty of options to tailor the X3 to your preferences.

Verdict: We had some unexpected trouble with BMW’s latest infotainment system, the Steering Assistant technology proved aggravating in certain situations, and our test vehicle’s 21-inch wheels and M Sport suspension tuning produced a firm, jiggly ride on imperfect road surfaces. However, despite these complaints, the redesigned 2025 BMW X3 impresses.

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.