Volkswagen T-Cross vs Volvo XC60

What's the difference?

There are so many new little SUVs out there and it might be easy to think they’re all the same - a tiny cheap SUV is just a tiny cheap SUV. But I’m convinced the Volkswagen T-Cross isn’t like the others.

Yes, it’s tiny and relatively cheap, but it can do more than most of the others from the storage and space it offers to the value-for-money and its level of refinement. Then there’s the way it drives - which can’t in my books be matched by any of its rivals.  

The sweet spot in the range is the entry grade Life. At $35K drive-away the value is best and with no difference in engines between the grades there are no huge reasons to step up higher in the range unless you have the money.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

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.

The T-Cross is Volkswagen’s smallest SUV at 4.1m long and even though it’s closely related to the little Polo hatchback it looks more like a mini version of the Tiguan.  

It might be tiny and relatively affordable but it has Volkswagen’s premium looks and sharp styling, with creases in the panels so crisp it looks like somebody just ironed it.

This update has brought new front and rear bumper designs, and new styling to the LED running lights and tail-lights. That’s typically how car companies do exterior design updates, inside the styling changes are pretty minimal, too.

There’s new dashboard design and new media screen, but again the design and quality feels refined and high quality, which I can't say goes for a lot of this car's rivals.

The entry-grade Life misses out on the cross design tail-lights of the Style and R-Line, and gets hubcaps rather than alloy wheels like the other two grades.

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.

You really should take a look at my video to get an idea of how good space and storage is in the T-Cross. I’m tall at 189cm but I can drive with plenty of elbow room and legroom. The front seats also have really long bases which offer great under-thigh support, too.

Legroom in the back is great for the class and I can sit behind my driving position without my knees touching the seatback, while headroom is excellent, too. The second row also slides on rails to increase the boot side which is enormous for the class at 455L.

The second row doors also have large apertures making entry and exit easier.

Cabin storage is great with giant door pockets in the front and back, a wireless phone charger with four USB-C ports (two in the front and two in the second row).

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.

The T-Cross has a 1.0-litre three-cylinder engine which sounds tiny and it is, but it's turbo-charged and the 85kW/200Nm it produces is plenty of grunt to move this little SUV which at just under 1.3 tonnes is relatively light. 

All grades in the T-Cross line-up have this same engine and there’s no high-performance variant, although the R-Line has selectable drive modes. Every T-Cross is front-wheel drive with a seven-speed dual-clutch auto transmission. 

This three-cylinder is a mighty little beastie with a growly tone to it. There is some turbo lag during stop-start city driving, but it’s so eager to play that if it was a dog it’d be a Jack Russell with every intention to chase anything it sees but no idea how small it is.

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.

Smaller engines use less fuel than larger ones and the 1.0-litre three-cylinder in the T-Cross is little and Volkswagen says over a combination of open and urban roads it uses 5.6L/100km.

That’s fuel efficient but these days larger SUVs with hybrid systems are achieving the same low consumption. Toyota’s Yaris Cross is available with a hybrid system and will use about 3.8L/100km.

Volkswagen doesn’t have a hybrid version of the T-Cross, but it should, especially given these little cars will spend more time in urban environments where fuel consumption will generally be higher.

That said, most tiny SUVs don’t have hybrid systems so that makes the Yaris Cross exceptional while the T-Cross is about average.

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.

Quite possibly the best little SUV to drive for this price and size, the only drawback is that there’s a touch of lag in the time it takes the power to arrive at low speeds in stop-start traffic, but that can be remedied by putting the transmission in 'Sport' mode.

The steering is light and accurate, the visibility is excellent thanks to the big windows and raised ride height, the pedal feel under your feet is great and the brakes are responsive.

The car feels stable, planted and secure whether it's on a motorway, or a winding country road, while the little 1.0-litre engine is a champion that keeps punching with a throaty growl that matches its enthusiasm.

The seven-speed transmission is superb and changes gears fast, while the paddle shifter lets you take control to keep the revs high.

These little SUVs aren't sports cars but some are so underwhelming to drive it feels like performance was never thought about while developing the vehicle.

But the T-Cross made me grin until my face hurt on the steep winding hairpin filled roads we tested it on at its launch. 

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 T-Cross is covered by Volkswagen’s five-year unlimited kilometre warranty.

Servicing is recommended every 15,000km or yearly and while there’s no capped price servicing you can buy a five-year plan for $2800, which equates to $560 per workshop visit.

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.