What's the difference?
For Lexus, 2025 was a year of celebration. It marked not only its 35th anniversary in Australia but was also the year when total sales surpassed 200,000 since its local launch and electrified powertrains took a record share of more than 76 per cent of the fleet.
In other words, three out of four Lexus vehicles sold were either HEV (Hybrid), PHEV (Plug-in Hybrid) or BEV (Battery) with the most popular model for more than a decade being the mid-size NX which represents more than 40 per cent of the Japanese marque's sales. The NX was also calendar year 2025’s top seller in Australia's ‘Medium SUV over $60K’ segment in which it competes against a bewildering number of rivals.
Clearly, the NX has hit a sweet spot with prestige SUV buyers, with the vast majority choosing HEV or PHEV powertrains. We were recently handed the keys to one of the latest NX offerings to find out why this stylish five-seater has such enduring appeal for couples, families, weekend travellers and business professionals.
The XC40 Recharge Twin Motor is the flagship model for the segment leading small electric SUV from Volvo.
Well positioned in terms of price, specifications and driving range, it continues to prove itself a fierce rival to the Mercedes-Benz EQA, Lexus UX and newcomer BMW iX1.
But does it bring its A-game to every attribute buyers in the small electric SUV segment demand? In this review, we put it to test to find out.
The NX 450h+ Luxury combines high build quality and upmarket looks with plug-in hybrid convenience/performance/economy and numerous luxury appointments. It’s a competent all-rounder that's difficult to fault and clearly meets the needs of many prestige mid-size SUV buyers.
The Volvo XC40 Recharge Twin Motor is a cute small electric SUV that offers a decent specs list and a sweet urban driving experience. It’s not the nicest ride on a longer journey but it does have a decent range to be able to tackle one, if needed. I didn’t love the interior design but there’s lots the XC40 gets right.
The exterior is a sculptured blend of sharp creases and flowing curves which create a sporty and sophisticated appearance that clearly appeals to many buyers.
The interior looks and feels about as spacious and airy as you could realistically expect in a mid-sized SUV, which is enhanced with the roof open and sunshine pouring in.
The boldly contrasting two-tone grey and camel interior trim in our test vehicle adds to its visual appeal although we suspect such a bold colour choice could also be a stain magnet in everyday use, particularly for young families with lots of sticky kids’ stuff onboard.
The XC40 Recharge sees some design changes from its fuel-based counterparts and that’s mainly seen in the front because you get a body-coloured panel instead of a standard grille. The 20-inch alloys feature a chunkier-looking design but the front still boasts the cool ‘Hammer of Thor’ headlights (which I'm rather fond of).
The interior is where the electric powertrain loses me because the fuel-based equivalent is so much nicer inside with its leather-accented upholstery and trims.
It's lovely that there has been a conscious effort to use recycled materials and non-leather upholstery throughout but I'm left with the strange-feeling that synthetic seats don’t reflect the grade or price level of this car.
Other than the cool-looking topography inserts on the dash and front doors and the 9.0-inch vertical multimedia system, it’s pleasant but a little basic in the cabin. Which is shame because the exterior is cute as hell.
Its compact dimensions of 4660mm length, 1865mm width and 1660mm height make the usual driving chores in congested urban settings, particularly tight inner-city streets and parking spaces, much easier than a full-size SUV.
With its 2050kg kerb weight and 2540kg GVM, it has a load capacity of 490kg of which up to 75kg can be carried on the roof rails using approved racks.
While almost half a tonne of load capacity may seem ample, keep in mind that the combined weight of five large adults could reach that limit before you could start loading their luggage.
It’s also rated to tow up to 1000kg of braked trailer, which would be ideal for hauling small trailers with a recreational focus like fold-out campers, jet-skis, trail bikes etc. However, Lexus does not publish a GCM figure, so for weekend escapees we don’t know how much it can legally carry and tow at the same time.
There’s more than adequate space for the driver and front passenger, along with storage that includes a bottle-holder and bin in each door, overhead glasses holder and a single glove box.
The centre console has two cupholders and a deep box with padded lid that doubles as a comfy elbow rest. You’ll also find a quartet of USB ports, a 12V socket and wireless phone charging pad.
The rear bench seat is surprisingly accommodating for tall people, given I’m 186cm and when seated behind the driver’s seat set in my position I still have sufficient knee clearance and headroom.
However, with three up, those in the centre must compete for shoulder space plus have their feet either side of the transmission tunnel and knees together between the front seat backrests. So, three adults is okay for short trips but should be capped at two for longer drives.
Rear passenger storage includes a bottle-holder and bin in each door, pockets on both front seat backrests and two cupholders with the centre seat backrest folded forward. The rear of the centre console has adjustable air vents, rear seat heating controls, another 12V socket and a pair of USB ports.
The power tailgate can open by waving your foot under the rear bumper (useful when hands are full) to gain access to the rear luggage area, which provides numerous internal hooks for securing cargo straps or nets plus underfloor storage for the charging cables and more.
This luggage area offers up to 520 litres (more than half a cubic metre) of load volume with the rear seat upright. It expands into what is effectively a small van when the rear seat is folded flat, which can carry everything from a mountain bike to flatpack furniture.
Front passengers enjoy the most space and I have plenty of head- and legroom up front. It’s a really easy car to get in and out of and the individual storage is very good for the class.
Front passengers enjoy a glove box, middle console with a removeable bin, two cupholders, utility tray and skinny drink bottle holders in the storage bins in the doors.
In the rear, passengers get map pockets on the backs of the front seats, two cupholders in the fold-down armrest and small storage bins in each door.
The synthetic leather-trimmed seats look neat and tidy but are very hard in the cushion, which makes them a tad uncomfortable on longer trips. The rear seats are much the same.
Charging options throughout the car are good with the front enjoying a 12-volt port, two USB-C sockets and a wireless charging pad to choose from. The rear also gets two USB-C ports and there's another 12-volt outlet in the boot.
The rest of the technology is easy to use once you spend some time with it. The 9.0-inch touchscreen multimedia system features built-in Google Maps, Assistant and Play Store apps, as well as, YouTube.
The 12.0-inch digital instrument panel isn’t customisable but I like the way it pulls through the satellite navigation screen and directions.
Because of the dual-motor powertrain, your boot capacity drops to 419L from 452L for the single-motor variant. It is large enough for my grocery shop and random errands and you can fold the floor up to create a deep storage well for additional space. Fold the 60/40 split-folding rear seat and available space expands to 1295 litres.
I don’t like the hardened cargo liner, it feels and looks a little cheap, but I do like the powered tailgate. There’s also handy frunk storage of 31L, which is perfectly sized for any charging cables you will have.
Our test vehicle is the NX 450h+ Luxury (launched late 2025) which sits one rung below the premium 450h+ F Sport on the model ladder. Even though they share the same PHEV all-wheel drive (AWD) underpinnings, the Luxury’s emphasis on providing more affordable luxury at the highest level is reflected in its list price of $84,500, before on-road costs, which is $11,500 less than its F-Sport sibling. Our example is finished in optional 'Graphite Black' prestige paint available at extra cost.
As you’d expect there are plenty of items on the standard equipment list including 18-inch alloy wheels with 235/60 R18 tyres and an inflator/repair kit (no spare), heated door mirrors, tilt-and-slide moonroof, a rear spoiler, roof rails and LED headlights/DRLs to name a few.
Step inside using the smart entry and start function and drivers are treated to luxuries like front seat heating/ventilation with 12-way power adjustment (eight-way passenger), a heated steering wheel with paddle shifters and power height/reach adjustment, digital multi-information display, an electric parking brake, traffic sign recognition, tyre pressure monitoring and active parking aids.
There’s also outer rear seat heating, dual-zone climate control, wireless phone charging, multiple USB ports, 10-speaker premium sound, a 14-inch multimedia touchscreen with multiple connectivity including wireless Apple CarPlay/Android Auto and lots more.
There are two powertrain options in the XC40 family, a mild-hybrid or pure electric. The latter gets two variants and we’re in the top-spec Recharge Twin Motor, which is priced from $85,990, before on-road costs. This positions it in the middle of its nearest rivals but in its family line-up it’s a big $23K jump from its Ultimate B4 AWD combustion equivalent.
The standard features list for the XC40 is robust and there are some great premium features, like the electrically-adjustable and heated front seats with extendable under-thigh support and electric lumbar control.
A panoramic sunroof makes the cabin feel light and airy, the rear outboard seats have heat functions and the driver enjoys a heated steering wheel. You also get a premium 13-speaker Harman Kardon sound system in the Twin Motor.
Other premium features include pre-entry and after-park climate control (perfect for those super-hot days) and a hands-free powered tailgate.
Technology highlights include a complimentary four-year subscription for the built-in Google Assistant, Google Maps and Google Play Store which are accessed via the portrait-style 9.0-inch multimedia touchscreen.
There's also access to apps like YouTube, which delighted my seven-year old and would be handy on any charging stints for some diversion. It's surprising there isn't wireless functionality for Apple CarPlay and Android Auto but they can be hooked up via cable.
The sophisticated PHEV drivetrain with electronic AWD comprises a 2.5-litre four-cylinder petrol engine that delivers 136kW of power and 227Nm of torque to the front wheels through a Continuously Variable Transmission (CVT).
There’s also electric motors front and rear, fed by an 18.1kWh lithium-ion traction battery that can provide limited electric-only driving range.
The front electric motor, which assists with driving the front wheels through the CVT, produces 134kW/270Nm while a smaller one exclusively drives the rear wheels with 40kW/121Nm. Although the combined output from these three power sources is 310kW, Lexus claims a total system output of only 227kW to optimise efficiency and reliability.
The petrol engine and electric motor outputs are electronically synchronised and traction is continuously monitored to automatically vary the amount of power being sent to the front or rear wheels to optimise stability and traction in all conditions.
There’s also a choice of drive modes comprising 'Normal', 'Sport' and 'Eco' and paddles on the steering wheel allow manual shifting of the CVT 'ratios' for a more engaging drive, or to increase the regenerative braking effect (like using lower ratios on descents etc).
Several operational modes can also be selected including electric-only driving (we covered 60km on one full charge and 56km on another) and two modes of hybrid driving, plus battery charging while driving courtesy of the petrol engine which during our test charged the battery from near zero to 100 per cent in 56km.
There’s also external plug-in charging of course. At home we used the three-pin domestic wall socket compatible 10A charger/AC Type 2 cable supplied with the vehicle, which took about six hours (at a tiny 2.3kW) to charge from 35-100 per cent.
The XC40 Recharge Twin Motor features two electric motors which are powered by a large 82kWh lithium-ion battery and produce a combined power output of 300kW and 670Nm of torque.
Which is downright fun because it can do a 0-100km/h sprint in just 4.8-seconds!
Lexus claims average combined consumption of only 1.3L/100km, achieved in ideal lab conditions which is largely irrelevant. When we stopped to refuel after 424km of real-world testing, which included our usual mix of suburban, city and highway driving and switching between the different modes (including 116km of electric-only driving), the dash display was showing 5.7L/100km.
That was close to our own figure of 5.4 calculated from fuel bowser and tripmeter readings, so based on our test consumption and depending on the mix of drive modes used, you could expect a realistic driving range of up to 1000km from its 55-litre tank which prefers 95RON premium petrol.
The official energy consumption figure is 19kWh/100km and I averaged 19.2kWh over a fair mix of urban and open-road driving. The energy consumption isn't bad but some rivals do sit closer to that 16.5kWh mark.
The official driving range is up to 485km for this model but I only ever saw a top range of 410km. That's not terribly surprising given I wasn't shy with the power use but there was a little bit of range anxiety on longer trips.
The XC40 Recharge Twin Motor has a Type 2 CCS charging port which means you can benefit from faster charging speeds. On an 11kW AC charger you can go from 0-100 per cent in eight hours but on a standard three-pin house plug socket expect that wait time to go up significantly.
On a DC fast charger expect to go from 10-80 per cent in as little as 33-minutes.
The cabin is what you might call ‘cosy’ for tall people like me (186cm) but there’s still adequate room to find a comfortable driving position.
The ride quality is noticeably firm, which contributes to its sporty feel. The steering is nicely weighted with good response and braking is reassuringly strong.
Acceleration in full-electric and hybrid modes is brisk but not exceptional and about what you’d expect from this powertrain, which engages the rear electric motor for standing starts and other situations to ensure all-wheel drive traction is being deployed when you need it most.
We sampled the different drive modes, with 'Sport' providing a more engaging feel (particularly when manual shifting using the paddle shifters), 'Eco' producing a more subdued response to optimise range and the default 'Normal' providing a pleasant compromise.
Even so, despite its technical wizardry and generous choice of driver preferences, we reckon most daily driving owners would simply plug-in and charge each night, start off in electric-only mode and if needed continue in ‘Normal’ hybrid mode.
Like the Polestar 2 there’s no ignition button on the XC40. You shift into drive to ‘turn on’ and after you park, you simply get out to turn it off. It takes a little while to get used to but it’s a cool feature.
The twin motors deliver a hefty kick and you never worry about not having ‘enough power’. In the city it’s zippy but on the open-road you also feel comfortable getting up to speed or overtaking because the power distribution is so well-balanced because it’s an AWD.
I customised my steering wheel ‘feel’ to firm and it makes the handling crisp and direct. You feel like you’re in total control whenever you have to tackle be it tight streets or small car parks.
The blind-spot visibility is compromised by how wide the B and C-pillars are and I find that I'm relying a lot more on the blind-spot monitoring system to compensate.
The XC40 loses a few points for me in terms of ride comfort. As mentioned, the seats aren't terribly comfortable but the suspension is hard enough that you notice every bump, as well.
Road noise is also quite pronounced and it doesn’t sound refined when you drive at higher speeds, which is a shame. The flip-side, though, is that you don’t notice those things as much on short, urban trips.
The standard regen braking isn’t customisable and you don’t notice it until you switch over to a 'one-pedal' function. I found this function uncomfortable to use as it’s very aggressive and creates a jerky driving experience.
Because of its 4440mm length and tiny 11m turning circle, you won’t struggle in a car park! The 360-degree view camera system and front and rear parking sensors make it easy to navigate a tight spot.
This is a joy to park. It’s so easy.
The NX has a maximum five-star ANCAP rating (awarded 2022), eight airbags and a suite of active safety features including AEB with pedestrian and daytime cyclist/motorcycle detection, steering assist, lane-keeping, safe exit assist, rear cross traffic alert, blind-spot monitoring, traffic sign recognition, LED DRLs, tyre pressure warning and lots more. The rear seat is equipped with two ISOFIX child seat anchorages and three top tethers.
The XC40 has a long safety features list but a standout is the Volvo designed 'Side Impact Protection System' (SIPS) that reinforces the car's steel framework at the sides and disperses energy in a side collision.
Other standard features include full LED external lights, daytime running lights, adaptive cruise control, rear cross-traffic alert, blind-spot monitoring, driver attention alert, forward collision warning, lane departure alert, lane keeping aid, intelligent seatbelt reminders, traffic sign recognition, 360-degree camera system, front and rear parking sensors.
The XC40 has a maximum five-star ANCAP safety rating from testing done in 2018. It has seven airbags, including a driver's knee bag and features high individual scoring for adult and child occupant protection at 97 per cent and 84 per cent, respectively.
The XC40 has AEB with car, pedestrian and cyclist detection and is operational from 4.0-210km/h. It's usual to see that top speed sit closer to 180km/h, so that's very good.
A cool feature for any parents out there is the second key which you can program to limit stereo volume levels and set a maximum speed allowance. It's even coloured bright orange so there are no chances of a sneaky switcheroo!
There are ISOFIX child-seat mounts on the rear outboard seats and three top-tether anchor points for any families out there but two seats will fit best.
Comes standard with a five years/unlimited km warranty. Same applies to the lithium-ion traction battery, which is eligible for additional warranty coverage of up to five years (so 10 years in total) based on annual inspections.
Scheduled servicing is every 12 months/15,000km, whichever occurs first. Capped pricing, which applies to the first five scheduled services up to five years/75,000km, totals $3225 or an average of $645 per service.
The ongoing costs are pretty solid with the XC40 coming with a usual five-year/ unlimited warranty term but the drive battery is covered for eight years/160,000km.
You can pre-purchase a five-year/150,000km servicing program for a flat $3000 or an average of $600 per service, which is a bit expensive for the class. Servicing intervals are great at every two-years or 30,000km, whichever occurs first.
You get complimentary roadside assistance for five-years through Assist Australia and if you meet certain criteria, you can extend that by a further three years, which is handy.