Toyota Highlander Hybrid vs Volvo XC40
Overview | |
MSRP$40,620 | MSRP$36,350 |
Listings3575 | Listings7234 |
Ratings & Reviews | |
User Reviews | User Reviews |
Expert reviews5.7 out of 10 | Expert reviews7.5 out of 10 |
Pros
Cons
| Pros
Cons
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Reviews SummaryThe Highlander Hybrid's popularity is understandable, given the midsize, three-row crossover's impressive EPA fuel economy rating and accessible base price. However, generally speaking, the 2023 Toyota Highlander is not what it should be, and specifically, the Highlander Hybrid doesn’t meet efficiency expectations. Unfortunately, this Toyota faces few rivals, and only one of them costs less. But the Kia Sorento Hybrid and Plug-in Hybrid models are worthy alternatives. | |
Reviews SummaryIn 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. | |
No video found | No video found |
Popular Features & Specs | |
Engine2.5L 243 hp I4 Hybrid | Engine2.0L 194 hp I4 |
DrivetrainFWD | DrivetrainFWD |
Seating Capacity8 | Seating Capacity5 |
Horsepower | Horsepower194 hp @ 4800 rpm |
EV Battery Capacity1.9 kWh | EV Battery Capacity |
MPG City36 | MPG City24 |
MPG Highway35 | MPG Highway32 |
Engine | |
Engine Name2.5L 243 hp I4 Hybrid | Engine Name2.0L 194 hp I4 |
Torque | Torque221 lb-ft @ 1500 rpm |
Horsepower | Horsepower194 hp @ 4800 rpm |
DrivetrainFWD | DrivetrainFWD |
Fuel Economy | |
EV Battery Capacity1.9 kWh | EV Battery Capacity |
MPG City36 | MPG City24 |
MPG Highway35 | MPG Highway32 |
Interior | |
Leather Seats | Leather SeatsStandard |
Seating Capacity8 | Seating Capacity5 |
Key Features | |
Navigation System | Navigation SystemStandard |
Safety | |
Front Crash Overall4 | Front Crash Overall5 |
Side Crash Overall5 | Side Crash Overall5 |
Dimensions & Capacity | |
Cargo Space16.0 cu ft | Cargo Space21.7 cu ft |
Curb Weight4330 lbs | Curb Weight3726 lbs |
Height68.1 in | Height65.2 in |
Length194.9 in | Length174.8 in |
Width76.0 in | Width80.1 in |
Wheelbase112.2 in | Wheelbase106.4 in |
Maximum Payload1495 lbs | Maximum Payload925 lbs |
Number of doors4 | Number of doors4 |
Maximum Towing Capacity3500 lbs | Maximum Towing Capacity3500 lbs |
Overview | ||
MSRP | $40,620 | $36,350 |
Listings | ||
Ratings & Reviews | ||
User reviews | ||
Expert reviews | 5.7 out of 10Read full review | 7.5 out of 10Read full review |
Pros & cons | Pros
Cons
| Pros
Cons
|
Summary | The Highlander Hybrid's popularity is understandable, given the midsize, three-row crossover's impressive EPA fuel economy rating and accessible base price. However, generally speaking, the 2023 Toyota Highlander is not what it should be, and specifically, the Highlander Hybrid doesn’t meet efficiency expectations. Unfortunately, this Toyota faces few rivals, and only one of them costs less. But the Kia Sorento Hybrid and Plug-in Hybrid models are worthy alternatives. | 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. |
Video | No video found | No video found |
Popular Features & Specs | ||
Engine | 2.5L 243 hp I4 Hybrid | 2.0L 194 hp I4 |
Drivetrain | FWD | FWD |
Seating Capacity | 8 | 5 |
Horsepower | 194 hp @ 4800 rpm | |
EV Battery Capacity | 1.9 kWh | |
MPG City | 36 | 24 |
MPG Highway | 35 | 32 |
Engine | ||
Engine Name | 2.5L 243 hp I4 Hybrid | 2.0L 194 hp I4 |
Torque | 221 lb-ft @ 1500 rpm | |
Horsepower | 194 hp @ 4800 rpm | |
Drivetrain | FWD | FWD |
Fuel Economy | ||
EV Battery Capacity | 1.9 kWh | |
MPG City | 36 | 24 |
MPG Highway | 35 | 32 |
Interior | ||
Leather Seats | Standard | |
Seating Capacity | 8 | 5 |
Key Features | ||
Navigation System | Standard | |
Safety | ||
Front Crash Overall | 4 | 5 |
Side Crash Overall | 5 | 5 |
Dimensions & Capacity | ||
Cargo Space | 16.0 cu ft | 21.7 cu ft |
Curb Weight | 4330 lbs | 3726 lbs |
Height | 68.1 in | 65.2 in |
Length | 194.9 in | 174.8 in |
Width | 76.0 in | 80.1 in |
Wheelbase | 112.2 in | 106.4 in |
Maximum Payload | 1495 lbs | 925 lbs |
Number of doors | 4 | 4 |
Maximum Towing Capacity | 3500 lbs | 3500 lbs |
The 2023 Volvo XC40 maintained its distinctive appearance, blending Volvo’s modern design language with a flat-roofed, SUV-like profile. The exterior was clean and free of unnecessary detailing, with hidden tailpipes on gasoline models reflecting Volvo’s commitment to electrification. Updates for 2023 included a pixelated design for the “Thor’s Hammer” headlights, a more angular front bumper, and new wheel designs. The XC40 Recharge was easily identifiable by its new sealed-off grille. Inside, the XC40 retained its minimalist design, featuring thin air vents around the central touchscreen and scalloped elements for door handles and speaker grilles. The interior offered dual-zone automatic climate control, with options for leather or vegan leather upholstery. The XC40 Ultimate test vehicle included a panoramic moonroof and an Orrefors crystal shift knob, though the all-black interior felt somewhat utilitarian. While fit and finish were commendable, the materials reminded us that the XC40 was Volvo’s entry-level model.
The 2023 Toyota Highlander Hybrid, priced from $41,995, offered minimal appearance changes, with a new Cypress Green paint color and standard power-folding exterior mirrors on higher trims. The Highlander Hybrid’s design was over-styled, with exaggerated forms and dramatic sculpting. Inside, the cabin continued this theme with oversized elements like large air vents and a 12.3-inch touchscreen. The multi-layered dashboard featured mismatched textures and tones, creating a visually overwhelming experience. Despite the interior’s lack of quality feel, the Highlander Hybrid was notably quiet on the road, thanks to acoustic front window glass in higher trims. However, the driving experience was uninspiring, with soft suspension tuning and a groaning CVT contributing to a lackluster ride.


The 2023 Volvo XC40 introduced mild-hybrid powertrains, featuring a 48-volt electrical system and a 13-horsepower integrated starter generator. This system assisted the gasoline engine, improving fuel economy and smoothing power delivery. The base B4 powertrain combined the mild-hybrid system with a 2.0-liter turbocharged four-cylinder engine, producing 197 hp and 221 lb-ft of torque. The B5 model offered a more powerful 2.0-liter turbo-four with 247 hp and 258 lb-ft of torque. Both powertrains came with an eight-speed automatic transmission, with the B4 being FWD-only and the B5 AWD-only. The B4 and B5 models accelerated from zero to 60 mph in 8.1 and 6.1 seconds, respectively. The XC40 Recharge, with its two electric motors, delivered 402 hp and 486 lb-ft of torque, achieving a 0-60 mph time of 4.7 seconds and an EPA-rated 223-mile range. The Recharge also had a higher towing capacity of 4,409 pounds compared to the B5 AWD model’s 3,500 pounds.
The 2023 Toyota Highlander Hybrid paired a 2.5-liter Atkinson-cycle four-cylinder engine with two electric motor-generators, producing a combined 243 horsepower. The electric motors assisted in acceleration and allowed for low-speed electric-only driving. However, the gas engine’s 175 lb-ft of torque limited high-speed passing power. While Toyota claimed a towing capacity of 3,500 pounds, the Highlander Hybrid struggled with power, especially in mountainous terrain. The SUV offered Eco, Normal, and Sport driving modes, with an additional Trail mode for AWD models. The Highlander Hybrid prioritized fuel economy, featuring a Predictive Efficient Drive system, though it fell short of its EPA-rated 35 mpg, achieving only 28.7 mpg on the evaluation loop. The driving experience was uninspiring, with soft suspension and a groaning CVT contributing to a lackluster ride.
The 2023 Volvo XC40, while marketed as an SUV, was better suited for solo commuting than family carpooling. It offered reasonable space among its competitors, with ample rear-seat headroom and average legroom. The XC40 provided 20 cubic feet of cargo space with the rear seats in place and 46.9 cubic feet with them folded. Interior storage was well-designed, with scalloped door panels and a spacious center console storage bin.
The 2023 Toyota Highlander Hybrid was designed to handle daily family life, seating seven or eight people depending on the configuration. Most models featured second-row captain’s chairs, making the third row best for occasional use. Standard equipment included three-zone automatic climate control, with heated and ventilated front seats and heated second-row captain’s chairs in higher trims. The Highlander Hybrid offered 16 cubic feet of cargo space behind the third row, expanding to 48.4 cubic feet with the third row folded and 84.3 cubic feet with the second row down. However, the interior storage design was complex, and the optional all-weather cargo mat compromised utility.
The 2023 Volvo XC40 featured an Android-based infotainment system with Google apps, including Google Maps and Google Assistant. A 12.3-inch digital instrument cluster and a 9-inch touchscreen were standard, with a 13-speaker Harman Kardon audio system available in higher trims. The infotainment system offered pleasing graphics, though users preferring Apple products might find the Google features less satisfying. The minimalist design meant most controls were accessed via the touchscreen, which could be cumbersome for some functions.
The 2023 Toyota Highlander Hybrid introduced new technology, with upper trims featuring a 12.3-inch digital instrumentation display and a Toyota Audio Multimedia infotainment system. The system offered over-the-air updates, dual-device Bluetooth pairing, wireless Apple CarPlay and Android Auto, and several connected service plans. The Drive Connect service plan provided advanced features like natural voice recognition and cloud-based navigation. The test vehicle included a head-up display and an 11-speaker JBL sound system, which delivered decent sound quality. While the infotainment platform was user-friendly, the graphics could benefit from bolder contrast.
The 2023 Volvo XC40 was equipped with a comprehensive list of standard safety features, including lane keep assist, automatic emergency braking, and blind spot monitoring. Higher trims added features like a 360-degree camera system and adaptive cruise control. The XC40 received top safety ratings from the NHTSA and the IIHS, though it dropped to an “Acceptable” rating in the updated side-impact test.
The 2023 Toyota Highlander Hybrid came with Toyota Safety Sense 2.5+, offering adaptive cruise control, automatic emergency braking, and lane-keeping assist. Higher trims added parking sensors and a surround-view camera. The Highlander Hybrid received excellent crash-test ratings from both the IIHS and the NHTSA.
CarGurus highlights

According to CarGurus experts, the overall rating for the 2023 Volvo XC40 is 7.5 out of 10, while the 2023 Toyota Highlander Hybrid scores 5.7 out of 10. Based on these ratings, the 2023 Volvo XC40 is the recommended choice, offering a more refined driving experience, advanced safety features, and a practical interior design.
Choose the 2023 Volvo XC40 if:
- You prioritize a refined driving experience with a high level of comfort and composure.
- You value advanced safety features and top safety ratings.
- You prefer a minimalist interior design with a focus on practicality and storage.
Choose the 2023 Toyota Highlander Hybrid if:
- You need a family-sized SUV with seating for up to eight people.
- You prioritize fuel economy and a quiet ride on the highway.
- You want a comprehensive suite of advanced driving assistance systems.
CarGurus highlights

According to CarGurus experts, the overall rating for the 2023 Volvo XC40 is 7.5 out of 10, while the 2023 Toyota Highlander Hybrid scores 5.7 out of 10. Based on these ratings, the 2023 Volvo XC40 is the recommended choice, offering a more refined driving experience, advanced safety features, and a practical interior design.
Choose the 2023 Volvo XC40 if:
Shop Now- You prioritize a refined driving experience with a high level of comfort and composure.
- You value advanced safety features and top safety ratings.
- You prefer a minimalist interior design with a focus on practicality and storage.
Choose the 2023 Toyota Highlander Hybrid if:
Shop Now- You need a family-sized SUV with seating for up to eight people.
- You prioritize fuel economy and a quiet ride on the highway.
- You want a comprehensive suite of advanced driving assistance systems.

By: CarGurus + AI
At CarGurus, our team of experienced automotive writers remain at the heart of our content operation, conducting hands-on car tests and writing insightful guides that are backed by years of industry experience. To complement this, we are harnessing AI to make our content offering more diverse and more helpful to shoppers than ever. To achieve this, our AI systems are based exclusively on CarGurus content, ratings and data, so that what we produce is both unique to CarGurus, and uniquely helpful to car shoppers.







































