Subaru XV vs Volvo V40

What's the difference?

Even years on from its initial launch and with only subtle changes to its main range, it’s really to Subaru’s credit that the XV feels just as capable and modern as any of its rivals.

This is not to say it’s perfect. We can’t recommend the base model, the maths don’t really work out on the hybrids, the only available engine is breathless, and it has a small boot.

But the XV’s excellent safety suite, driving dynamics, all-wheel-drive capability, quality finish and comfortable interior mean it’s hard not to be charmed by this little lifted hatch.

Our pick of the range? While the 2.0i-L is great value, we’d recommend you splurge to the 2.0i-Premium to get the full safety suite and extra garnish.

I’m going to miss this V40 like I do my old phone, and for many people this hatch really could really be close to perfect: excellent safety equipment, enjoyable to drive, cool prestige styling and some lo-fi buttons and dials that are far easier to use than swiping a screen. This is your last chance to own an old, new V40.

The key to the XV’s fun and adventurous appeal is perhaps the fact that it’s not really an SUV at all. It’s rather obviously a lifted version of the brand’s Impreza hatchback, and this is to its credit.

It’s simple but tough, cute but capable, and really everything many consumers are looking for when it comes to a small, all-wheel-drive SUV. Not only does this design philosophy (of lifting wagons and hatches rather than creating bespoke “SUVs”) match Subaru’s family of products, but the ride height, plastic claddings, and tough-looking alloys offer hints of the all-wheel-drive capability that lies beneath.

Little has changed for the 2021 model year, with the XV most recently receiving a tweaked grille, updated front bumper, and a new set of alloy wheels. The XV range is also available in a fun array of colours, which Subaru hopes will help it win more of a youth vote. As an added bonus, none of the colour choices carry an extra charge.

The interior of the XV continues the fun and adventurous theme with Subaru’s signature chunky design language noticeably different from its rivals. My favourite element of this has always been the bumper-car steering wheel, which feels great in your hands in its leather-clad finish, but there are also nice soft claddings throughout the doors and big seats with nice bolstering and design.

While we like how big and sharp the main 8.0-inch screen is, if there’s one thing Subaru gets wrong it’s how busy the whole cabin package is. The visual assault of three screens seems unnecessary, and as much as I like the wheel, it is also completely adorned in somewhat confusingly labelled buttons and toggles.

Still it’s an attractive, fun, and unique design amongst its small SUV peers. Subaru fans, at least, will be sure to adore it.

The V40 has been around forever (well, since 2012) but somehow it still looks great – it’s the Nicole Kidman/Rob Lowe of cars.

The thing is Volvo’s new-generation vehicles now have a different look, which will be worn by the next V40, and that seriously dates the current car.

Sure, in 2016 this V40 was updated and given 'Thor’s Hammer' LED running lights like the new-gen cars, but it’s clear the V40 has the old look.

The question is: are you the type of person who would be annoyed if this time next year somebody in the latest ‘new-look’ V40 pulled up beside you at the lights. If yes, then stop reading now… we’ll just wait a moment for you to leave.

Okay, it’s just us now. We don’t need those shallow people anyway, right? They don’t know what they’re missing out on – like an interior with lots of buttons. I’m serious the centre console actually has a numerical key pad for making phone calls. There are also lots of dials for the climate control and seat warmers and for the auto parking system.

All of these buttons will be replaced by a sexy, large touchscreen in the new V40, which will make the screen in the current one look like the slot in Ned Kelly’s helmet. Wait, don’t leave. See, I’ve road tested the new X60 and I missed just flinging a dial to make the cabin’s temperature cooler, instead I had to go into the screen’s menu, find the climate functions, and then slide my finger down a little digital ladder until I found 21 degrees. It’s a frustrating design and potentially distracting in that it takes your eyes off the road longer than twisting a dial does.

I’ll stop the rant. So, yes, the interior of the new V40 will look so sleek and minimalist, decluttered of its buttons and sporting a large vertical screen, but there are functional advantages to keeping it simple.

That said the current V40’s cabin is still special and elegant. The Inscription grade brings milled aluminium trim to the centre console and that leather steering wheel. Volvo owners would be aware of that solid, well-built feeling with a high-quality fit and finish.

What are the V40’s dimensions? Compared to the Audi A3 Sportback the V40 is 59mm longer at 4369mm end-to-end, 72mm wider at 1857mm across, and 5mm shorter in height at 1420mm.

In some ways the XV is very impressive when it comes to its interior practicality, but in other ways it disappoints.

The front seats offer heaps of room for adults with good adjustability, and while the seating height is very high by default, there’s still lots of headroom and adjustability, with the added benefit of a very commanding view of the road for such a small SUV.

As mentioned, the doors, dash, and transmission tunnel are all clad in soft materials, and front passengers also benefit from no less than four USB ports in every grade except the base 2.0i, a huge centre console box, comfortably large bottle holders in the centre with a removable divider, a small bay under the climate unit that also houses a 12v outlet and auxiliary input, and a single large bottle holder in the doors with a small adjoining bin.

A surprise comes in the rear seats, which offered enough head and knee room for a particularly tall friend of mine. It’s rare for the small SUV segment to offer such space, but behind my own (182cm tall) seating position I had ample airspace for my knees and decent airspace for my head too, even despite the Premium and S grades having a sunroof fitted.

Rear passengers get a flip-down armrest with bottle holders, a small bottle holder in the doors, and pockets on the backs of the seats. The seat cladding is just as good as it is in the front, and the width in the rear seats is notable, however the centre seat suffers from the existence of a tall transmission tunnel to facilitate the all-wheel-drive system, and there are no adjustable air vents or power outlets for rear passengers either.

Finally, one ongoing weak point for the XV is the amount of boot space on offer. Boot capacity is 310-litres (VDA) for non-hybrids or 345 litres for hybrid variants. This is decent when compared to smaller light SUVs but definitely leaves room for improvement when it comes to the XV’s main small SUV competitors.

Space can be boosted to 765L in non-hybrid or 919L in hybrids with the seats down (again, not great), and the hybrid model loses the underfloor space-saver spare wheel, instead leaving you with a very compact puncture-repair kit.

Umm, next question. Okay, the V40 is not very practical. Those small rear doors don’t open wide, making entry and exit potentially difficult for older or less limber folks.

Legroom in the back is limited – although at 191cm I can just sit behind my driving position and headroom is getting tight, too – but still there’s just enough room for me.

The V40’s cargo capacity is 335 litres and that’s smaller than the A3 Sportback’s boot space (380 litres) and the BMW 1 Series’s luggage capacity (360 litres). The aperture of the boot itself is also small.

There’s even a practicality issue with the driver’s doorway – that windscreen is so slanted that the A-pillars either side of it are hard to dodge for taller people when trying to get in, but especially when climbing out.

The Volvo V40 in the mid-range Inscription grade with the T4 engine lists for $43,990. When I road tested it for the first time five years ago (in 2013) it was $45,990, and it’s a better car now than it was then, with more standard features.

The list includes a 7.0-inch touchscreen with reversing camera, sat nav, eight-speaker sound system with CD/DVD player, digital radio, and internet connectivity – but no Apple CarPlay or Android Auto. 

Also standard are front and rear parking sensors, an auto parking system, plus power adjustable driver and front passenger seats. There’s also leather upholstery, leather-trimmed steering wheel, dual-zone climate control, 17-inch 'Sarpas' alloy wheels and proximity key entry.

The safety equipment list is impressive, too – you can read all about what’s looking after you in the safety section below.

If you wanted a model comparison, then also look at the BMW 1 Series 18i M-Sport for $43,890 or the Audi A3 Sportback 2.0TFSI for $46,400 or Mercedes-Benz A200 for $44,300.

Also, don’t forget that because the current V40 is due to be replaced, dealers will be keen to move their stock to make way for the new one and that means you should be able to get yourself a bargain.

The XV now has two drivetrain options in Australia. One is the carryover 2.0-litre petrol engine, now with a smidge more power, and a hybrid version of the same layout with an electric motor housed in the continuously variable transmission. There is no manual variant in the XV range.

The 2.0i models produce 115kW/196Nm, while the hybrid produces 110kW/196Nm from the engine and 12.3kW/66Nm from the electric motor. All variants are all-wheel drive.

The hybrid system is powered by a lithium-ion battery pack under the boot floor, and in practice functions a bit differently from Toyota’s popular system.

We’re sure Subaru die-hards will be dismayed to know a version of the XV packing the larger Forester’s 2.5-litre petrol engine (136kW/239Nm) will not be making it to Australia for the foreseeable future.

The V40 line-up has three petrol engines to pick from and the T4 sits right in the middle between the most powerful T5 and the least grunty T3. A 2.0-litre four-cylinder turbo-petrol engine the T4 makes 140kW/300Nm and delivers it through a smooth six-speed automatic.

That engine is up there with my favourite things about the V40 Inscription. The power figure isn’t huge but 300Nm of torque provides decent shove. A 0-100km/h time of 6.9 seconds isn’t at all slow.

It’s not such a great story for the hybrid variant here, as even on the official numbers it only saves a tiny amount of fuel.

The official/combined number for 2.0i variants is 7.0L/100km, while the hybrid variants trim this to 6.5L/100km.

In practice it only got worse on my test. Over similar driving conditions consisting of several hundred kilometres over the course of a week, the 2.0i-Premium non-hybrid produced 7.2L/100km, while the hybrid actually used more fuel at 7.7L/100km.

It’s worth noting we’ll be holding on to the hybrid for a further three months as part of a long-term urban test. Check back in to see if we can trim this number down to something closer to its claim in the coming months.

All XV variants can drink base-grade 91RON unleaded and 2.0i variants have 63-litre fuel tanks while hybrids make use of a 48-litre tank.

Volvo says the V40 should use 5.6L/100km of premium unleaded fuel over a combination of open and urban roads.

If you’re only going to stick to urban areas you’ll see higher usage – our trip computer was reporting an average of 14.9L/100km on a regular peak hour commute, but motorways drop the figure to about 8.0L/100km.

No matter which XV you choose, you’ll be getting a very comfortable and easy-to-steer small SUV, and the drive experience has only improved with this year’s updates.

The XV’s newly re-worked front suspension and tall ride height make for a package more than capable of dealing with anything the suburbs will throw at it. This is the kind of car that scoffs at speed bumps and potholes.

The steering is light enough to be comfortable, but provides just enough feedback to keep it engaging, too, and the always-on all-wheel-drive system provides a sense of constant security in corners and even on loosely sealed or wet surfaces.

The XV has better SUV cred than almost every other car in its class on the capability front, enough at least to make it a decent companion for seeking those unsealed campgrounds or vantage points.

Where it’s not as good is its engine options. We’ll get to the hybrid in a moment, but the standard 2.0-litre engine is underpowered for a relatively heavy small SUV, with the added burden of all-wheel drive, and it feels it. This engine doesn’t have the follow-through of its turbocharged rivals and is very thrashy when much is asked of it.

This experience isn’t really helped along by the rubbery-feeling continuously variable automatic transmission, which is at its best in stop-start traffic. It strips the fun out of trying to drive this car with a bit more vigour.

Unlike Toyota's hybrid alternatives, the hybrid XV isn’t a significantly different experience behind the wheel. Its electric motor doesn’t really have enough strength to get it up to speed, but it does assist when it comes to acceleration and coasting to help take the stress partially off the engine. The XV also doesn’t provide a hybrid indicator like Toyota does, so it’s much harder to understand the effect your accelerator input is having on the motor.

The centre screen does display the energy flow, though, so it is good to have some kind of feedback that the hybrid system is helping on occasion.

Hybrid variants also add something called “e-Active Shift Control”, which uses input from the car’s sensors and all-wheel-drive system to better tune the hybrid assistance to the CVT. In general driving terms, this lets the electric motor pick up the slack of the petrol engine when it's most needed in the corners and in low-torque instances.

On a final note, all of these moments of electrical assistance do make the hybrid versions notably quieter than the non-hybrid ones. I still wouldn’t recommend choosing the hybrid on its driving experience alone, but it will be interesting to see how Subaru can build on this technology in the future.

That grunty 2.0-litre engine teamed with that smooth six-speed transmission goes a long way to making the V40 Inscription T4 an enjoyable car to drive.

Good handling and a fairly comfortable ride complete a prestige and easy-to-drive package that’s only really let down by heavy steering and slightly noisy suspension. That heavily sloped windscreen does present some visibility issues, but it’s not a deal breaker.

First tested in 2012, the V40 the achieved one of the highest-ever scores awarded by EuroNCAP and saw ANCAP give it the maximum five-star rating in Australia. Back then the V40 came standard with advanced safety equipment only making it onto cars these days such as AEB, it also had the world’s first pedestrian airbag, which inflates to protect people from hitting the A-pillars and windscreen.

The 2017 update added blind-spot warning as standard on the Inscription grade. A $1300 option package brings Lane Departure Warning, Lane Keeping Aid, Active High Beam Control, Forward Collision Warning and Road Sign Information. A $3000 package brings adaptive cruise control, collision warning with full auto braking, plus pedestrian and cyclist detection.

ABS, EBD, traction and stability control are of course there to step in should you need it, too. You’ll find three top tether and two ISOFIX points in the second row for child seats. A space-saver spare is under the boot floor.

Subaru remains on par with other Japanese automakers, with a five-year and unlimited-kilometre warranty promise. There’s 12 months of roadside assist included, and the XV is also covered by a capped-price servicing program for the life of the warranty.

Services are required once every 12 months or 12,500km, and while this is a welcome improvement on the six-month intervals this car used to have, these visits are far from the cheapest we’ve seen with an average price of nearly $500 per year.

The V40 Inscription is covered by Volvo’s three-year/unlimited kilometre warranty. Volvo has two capped-price servicing programs – the $1600 Smartcare for three years and the $2950 Smartcare Plus for five years.