Volvo XC40 vs Lexus NX

The NX is the compact crossover SUV of the Lexus lineup. It’s between the Lexus UX and Lexus RX in size and price, and competes with small luxury crossovers like the Acura RDX, Audi Q5, BMW X3, Genesis GV70, Mercedes-Benz GLC-Class, and Volvo XC60. This second-generation version arrived for the 2022 model year and receives minimal updates for 2026. The previous NX 250 base model is gone, but Lexus made some changes to the lineup to make the hybrid and plug-in hybrid NX models more affordable.

Verdict: The NX is a good value in hybrid form, but otherwise doesn’t feel like a true luxury vehicle.

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.