Volvo XC40 vs Mercedes-Benz GLC

Mercedes’ handsome compact SUV continues into the 2025 model year with a few revisions and a new plug-in hybrid electric vehicle (PHEV) variant. With just two powertrain options and a simplified array of trims, the GLC shows us that a simple-yet-measured approach makes it a strong candidate up against compact luxury SUVs from Audi, BMW, Genesis, Lexus, Porsche, and Volvo.

Verdict: The 2025 Mercedes-Benz GLC-class is a handsome and compelling new car fit for most duties.

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.