Volvo XC40 vs Honda CR-V Hybrid

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.

Competition amongst small crossover SUVs is fierce. The 2026 Honda CR-V faces off against the Toyota RAV4, Subaru Forester, Hyundai Tucson, and roughly a dozen other strong-selling compact SUVs from nearly every automaker. And, on balance, the Honda CR-V has handled the competition well. With over 400,000 units sold in 2024–more than half of which were CR-V Hybrids–Honda has plenty to feel good about with the CR-V. But while the CR-V has been thriving, Honda has been finding success with another name, too: TrailSport. This year, the two success stories finally met.

Verdict: The CR-V is one of the best compact crossovers on the market, and the hybrid powertrain only makes it better. If adventure and off-road driving are truly in the cards for you, however, the CR-V TrailSport may not be the right choice.