Volvo XC40 vs Lexus RX Hybrid

In 2024, the Lexus RX was the best-selling traditional luxury model in America. But is the midsize, two-row SUV’s popularity justifiable? Or does the RX sell on the strength of the Lexus brand and the model’s legendary reputation for reliability, a plush ride, and a quiet interior? The changes to the 2025 RX don’t help answer that question, unless you're looking for sportier choices, such as the new Black Line Special Edition shown here.

Verdict: Though it lacks substantial competition in the luxury hybrid SUV segment, the 2025 Lexus RX Hybrid is worthy of consideration. With hybrid, performance hybrid, and plug-in hybrid (PHEV) powertrain choices, as well as a range of trim levels that cater to a variety of customer requirements, it checks a lot of boxes.

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.