Lexus ES350 vs Volvo XC60

What's the difference?

The ES300h is outstanding in terms of ride comfort, refinement and value. If you’re looking for a true driver’s car then a Lexus RCF is probably a better tree to bark up, but if you’re looking to ferry passengers in a serene, prestigious and fuel-efficient way, then look no further.

The facelifted Volvo XC60 Ultra B5 Dark is the car at school pick-up that doesn’t need to brag. It just gets on with things and it looks good doing it. It offers a strong mix of family-focused features, comfortable and composed road manners and thoughtful practicality throughout the cabin.

The updated media system is crisp and responsive, though it could use a few tweaks to be truly intuitive. Overall, the XC60 mild-hybrid remains a solid choice for families who value understated luxury, comfort and safety over flash. It doesn’t reinvent the wheel, but it does what it does well.

If you think all Lexus models look the same, then pop on over to the Audi, BMW or Benz websites and take a peek at their line-ups. Compared to the ranges from those prestige car makers, Lexus models look wildly different from each other.

Opinions on that ‘Spindle Grille’ are as polarising as views on politics or religion. Personally, I like how upfront and brave the grille design is, but what seems odd to me is that it’s almost as if this was the only place on the exterior where designers were allowed to be a bit adventurous. The rear, while cleanly styled is a bit plain. The bottom just doesn’t match the face.

The ES300h’s roofline in side profile is beautiful as it sweeps almost fastback-style to the boot lid. Again, not the most dramatic styling, but it’s still pleasing in the sense that the design flows well together. The same can be said for the fit and finish – the panel gaps are near-perfect.

This perfection continues into the cabin, where the materials and craftsmanship matches German prestige rivals in places (the door handles, leather and digital instrument cluster, for example), only to be let down in other areas which disclose its budget Toyota family connection (the air vents, steering wheel and display screen).

The ES300h’s interior design isn’t going to set everybody’s world on fire, but there will be those who adore its asymmetrical styling with different textured surfaces that fold, swoop and jut up against each other’s space. Have a look at the images, they’re of the Sports Luxury which sits above the Luxury in the two grade line-up.

The differences visually between the grades is minimal. The Luxury has 17-inch alloys, while the Sport Luxury has 18-inch.

New colours for this generation include Glacial Ecru (the sandy hue of our test car in the images) and Radiata Green. Both grades’ interiors come in a variety of colour schemes, including Black, Chateau, and Topaz. Exclusively for the Sport Luxury cabin is Rich Cream, too. The Sports Luxury steering wheel has wood trim.

One of the more peculiar design elements of the ES300h’s cabin design, and there are a few, are the controls for the drive modes and traction control. They sit like horns on the instrument cluster hood, as though these are things the driver will constantly be reaching for, when in reality most people will never touch the traction control button.

A new-generation car means new foundations, and the ES300h is built on the GA-K platform which underpins the Camry. The platform is part of the latest global architecture which Toyota and Lexus are now using to build its vehicles.

The dimensions of the ES300h, if you’re wondering if it will fit in your garage, are just under 5.0m long, 1.9m wide and 1.4m tall.

The XC60 has a graceful, poised curbside presence. Its wide stance and smooth body panels give it a confident silhouette, while the redesigned grille with dark accents, integrated intake vents (both faux and real), and those sharp 'Hammer of Thor' headlights tie it all together. It’s not trying to be sexy, but it is undeniably handsome. It's the kind of SUV that turns heads quietly rather than shouting for attention.

Inside, the vibe is pure Scandi chic. There’s a refreshing lack of plasticky surfaces, with everything feeling solid and premium to the touch. The supple Nappa leather seats and expansive panoramic sunroof instantly make the cabin feel airy and refined.

Taking centre stage on the dash is a new 11.2-inch portrait-style media display. The layout is a little too reminiscent of an oversized iPad for my taste, but the crisp graphics and quick touch response are big pluses. Adding a touch of craftsmanship, the crystal Orrefors gear shifter and genuine driftwood inlays across the dash and centre console bring warmth and texture you don’t find in most rivals.

Is this facelift breaking new ground? Not really. But then, it doesn’t need to. Volvo has long been firmly planted in the premium end of the field and this update simply shows it's still cultivating all the right qualities.

The Lexus ES300h is a five-seater sedan, but it’s really designed to sit two comfortably in the back, given there’s a large driveshaft hump in the floor and that the outboard seats are divided by a fold-down control panel/armrest.

Legroom in the second row is ample. I’m 191cm tall, and I had about 20mm of space between my knees and the seat back when it was in my driving position. Headroom gets tight with that sloping roofline, but there’s just enough space thanks to the low hip point of the rear seats.

Cabin storage is excellent. The fold-down armrest for the rear seats has a storage tray and two cup holders, while the large centre console bin has a lid which can open towards the driver and also to the front passenger (I spent way too long marvelling at how it worked). There are two cup holders up front and decent-sized door pockets, too. Those rear doors open wide for easy exit and entry.

Boot space in the ES300h is 454 litres (VDA), beating the 410-litre cargo capacity of the BMW 530e.

As far as power outlets, you’ll find two USB chargers in the centre console storage bin and a Qi wireless charging pad, which is awkwardly situated making it hard to place larger phones onto it.

The XC60 is spacious without being sprawling. The front row is the sweet spot for comfort, with generous leg and headroom plus ergonomic seats that offer excellent under-thigh and side-bolster support. They also bring the luxury of heating, ventilation and even massage functions.

The rear row uses firmer padding, and while the backrest looks fairly flat, it’s deceptively supportive. Adults should be comfortable back there on longer journeys. Access is only slightly compromised by the wheel arch eating into the rear aperture, but otherwise it’s an easy SUV to get in and out of. My eight-year old pointed out that the rear doors are on the heavy side, though, and often need a good slam to latch properly.

Storage is well thought out throughout the cabin. Up front you get a decent glove box, cupholders, drink bottle holders, door bins, a dedicated phone tray that doubles as the wireless charging pad and a shallow centre console with two USB-C ports. One niggle. The cupholders don’t grip cups as snugly as they should.

The rear row has a 60/40 split with a 'ski-port' door and a fold-down armrest. And in the back, there are door bins with bottle holders, a fold-down armrest with cupholders and net map pockets. Rear passengers are also spoiled with dual-zone climate control, four directional air vents and two more USB-C ports.

One of the XC60’s best family-friendly features is the integrated booster seats, which have two height settings and fold neatly back into the base when not in use. They’re a lifesaver if you have kids who feel like they've 'aged out' of car seats but aren’t quite tall enough to go without. Of course, there are also ISOFIX mounts and three top-tether points if you still need to install child seats.

Out back, the boot offers a flat loading space, a powered tailgate with kick function and a healthy 613L of storage with all seats up (up to 1543L when the rear row is folded). You also get a 12-volt socket, a proper temporary spare tyre, and if you’ve got the optional air suspension (as per our test model) you can raise or lower the boot height for easier loading.

Tech usability is a bit of a mixed bag. The new 11.2-inch media display is sharp and responsive, and it comes pre-loaded with Google apps like Maps, Spotify and Assistant. But the Apple CarPlay and Android Auto isn't wireless, which feels like a miss at this price point.

The Bluetooth is patchy, with calls and music sometimes not syncing properly. A wired connection works better, especially for my iPhone 15 Pro Max, but I'm not a fan of leaving my phone on charge all the time. If you’re already familiar with Volvo or Polestar’s system, you’ll feel at home, but first-timers may need a little time to adjust.

There are two mild-hybrid variants in the XC60 line-up, and the one we’re driving here is the flagship Ultra B5 Dark. Priced at $81,990, before on-roads, it costs about $7000 more than the entry-level Plus B5 Bright, but that premium buys you a longer list of included features that makes the Ultra Dark feel like the sweet spot of the range. Especially considering Volvo also offers two plug-in hybrid XC60s, but those command up to $20K more!

In terms of market rivals, the XC60 sits right in the middle. The Audi Q5 TFSI starts at $81,000, while the Lexus NX 350h Sports Luxury AWD asks $87,900, both before on-road costs.

Standard equipment is generous. The Ultra Dark gets a panoramic sunroof and Nappa leather upholstery, with the electric front seats offering heating and ventilation functions plus a heated steering wheel for winter comfort. There's a 360-degree view camera system with surrounding parking sensors and a park-assist feature.

Tech upgrades include a new 11.2-inch media display with in-built navigation, Google apps, and wired Apple CarPlay/Android Auto, backed up by four USB-C ports, a 12-volt socket and a wireless charging pad. There's also a Volvo phone app, which allows users to pre-condition the climate prior to entry, have a digital key and program the spare key for any kids who might want to borrow the car!

Families will appreciate the thoughtful touches like a powered tailgate with kick function, built-in child booster seats in the rear row, a temporary spare tyre (a welcome feature), four-zone climate control and lots of storage throughout the cabin. Keyless entry sensors on every door add another layer of convenience.

Our test car was also fitted with just over $5000 worth of options, including the Bowers & Wilkins premium sound system, active air suspension, tinted rear windows, and even front seat massage functions. When you consider that many rivals charge extra for equipment that comes standard here, the XC60 Ultra B5 Dark makes a strong case for itself on value.

As mentioned at the start of this review, in Australia the Lexus ES is only available with one powertrain variant – a petrol-electric hybrid.

This combines a 2.5-litre four-cylinder petrol engine making 131kW and 221Nm, with an electric motor that has an output of 88kW and 202Nm. The 244.8V nickel-metal hydride battery has been moved from under the boot floor in the previous generation car to under the rear seats, so it no longer eats into the cargo space.

The ES300h isn’t a plug-in hybrid, so battery recharging is done through regenerative braking.

A continuously variable transmission means seamless and smooth low-speed driving using just the motor, but under heavy acceleration the engine activates and you’ll hear that drone associated with CVTs.

The Ultra B5 Dark tested here is all-wheel drive and has a 2.0-litre, four-cylinder, turbo-petrol mild-hybrid engine. It produces up to 183kW of power and 350Nm of torque.

The 'mild hybrid' tag comes from a 48-volt system paired with an integrated starter-generator. It’s not a full hybrid, so you won’t be gliding around silently on electric power alone, but it helps smooth out stop-start driving, boost efficiency and add a little extra shove when you put your foot down.

The result is an engine that feels lively in the city and confident out on the open road, with enough in reserve to make overtaking stress-free.

This is the point of a hybrid, right? To save fuel? The electric motor can power the car at low speeds around car parks or in bumper-to-bumper traffic, and I found that after 104km of both urban and open road usage my fuel economy in the Sport Luxury was 5.4L/100km.

Lexus’ official combined fuel economy figure for both the Luxury and Sports Luxury is 4.6L/100km.

Volvo claims combined cycle (urban/extra-urban) fuel use of 7.6L/100km for the XC60 Ultra B5 Dark, which isn’t bad for a turbo-petrol but reminds you that this is only a mild hybrid. With a 71-litre fuel tank, you’re looking at a theoretical driving range of up to 934km which is great for a family SUV likely to see its fair share of school runs and road trips.

In my real-world testing, which included plenty of urban driving with one longer trip in the mix, I averaged 8.6L/100km. That’s a little higher than the claim, but still a respectable result overall.

Two words: quiet and comfortable. Well that’s three words, but that sums up the ES300h on the road. Yes, rivals may have intelligent adaptive air suspension and leather made from free range cows, and they are supremely tranquil and sumptuous places, but challenging them is this ES300h.

Even with its regular shock absorbers and steel-spring suspension, the ride was outstanding for its comfort and composure on the worst roads Sydney could throw at it over the week we tested the car.

Front and rear seats were supportive and comfortable over long distances, too. From a driver’s perspective the experience was serene – this was an easy and relaxing car to pilot.

I’m not a huge fan of petrol-electric hybrid powertrains, but it suits the seamless personality of the ES perfectly, adding to the smoothness of the ride as it slipped silently through traffic.

Just don’t expect the ES300h to be rewarding from a dynamic driving perspective. The steering was heavy and a little numb, and while the handling was good, I felt disconnected from the road. And whenever I needed to move quickly the combustion engine would splutter to life and the CVT would begin to drone.

There’s plenty of power on tap, with enough left in reserve when you really need to push it. Around town, the XC60 keeps up with traffic effortlessly, and out on the highway it never feels strained. The transmission is fairly punctual with its shifts, though you do need to drive it a little more assertively to avoid any lag when accelerating from a stop.

Visibility is excellent thanks to the big, wide windows and higher driving position. It’s also refreshing to have a wide rear window behind the C-pillar as it's something not all rivals manage.

On the road, the XC60 feels composed and comfortable. The cabin stays quiet even at highway speeds and the suspension soaks up the worst bumps without ever feeling floaty or disconnected. Handling is equally predictable, with steering and dynamics that feel natural and reassuring. Take a sharp corner at speed and you will notice a slight loss of composure but it rights itself quickly.

Day to day it’s also very car park friendly. Parking sensors and the 360-degree camera view make manoeuvring simple, though the video feed looks a little blurry at the edges. A more seamless stitch between camera angles would improve the presentation, but functionally it gets the job done.

While the 2026 Volvo XC60 hasn’t undergone ANCAP testing yet, it continues Volvo’s long-standing reputation for safety with a comprehensive suite of features. Standard equipment includes autonomous emergency braking, blind-spot monitoring, lane keeping aid, lane departure warning, rear cross-traffic alert, front and rear collision warning, traffic sign recognition, driver attention warning and seven airbags - basically covering all of the essentials.

For families, there are integrated booster seats in the rear row, ISOFIX child seat mounts, and three top-tether anchor points. A stand-out feature is the programmable spare key, which is colour-coded in bright orange and allows you to set speed and speaker-volume limits. Which is ideal for nervous parents who share the car with teens or other young drivers.

Other practical safety touches include a protective first-aid kit and warning triangle, adaptive cruise control with stop/go function, parking assist, surrounding parking sensors and a 360-degree camera system.

The ES300h is covered by Lexus’ four-year/100,000km warranty. Servicing is recommended every 15,000km or 12 months. There is no capped-price servicing scheme.

The XC60 is covered by a standard five-year/unlimited-km warranty, which is okay for its class, especially at the premium end. You can pre-purchase either a three- or five-year 'Volvo Genuine Service Plan'. The five-year plan will set you back $3870, which is steeper than many rivals, though Volvo sweetens the deal with five years' complimentary roadside assistance. Services are spaced at every 12 months or 15,000 km, whichever comes first.

One thing for regional owners to keep in mind, while Volvo has a decent retail footprint, there are only 34 Volvo service centres in Australia. Depending on where you live, that can mean a long drive. In my case, the nearest Volvo service centre is almost two hours away. That adds travel time and inconvenience for regular maintenance or unscheduled work.