Volvo C40 vs Audi SQ2

What's the difference?

The C40 becomes a compelling option in the electrified small SUV space, offering a premium look and feel, great range and tech inclusions at the price, as well as awesome on-road dynamics.

Its main downsides are the rear seat, which is compromised by its platform and design-led roofline, and the overwhelming power and added traction of the dual-motor makes the single motor less attractive on the value front.

Still, regardless of variant chosen, the C40 looks to offer a stand-out balance of price, range, and performance, against its traditional rivals and newcomers alike.

The Q2 is good value and great to drive – especially the SQ2. The exterior looks new, but the cabin feels older than the larger Q3, and most other Audi models.

More standard advanced safety tech would make the Q2 even more appealing, as would a five-year, unlimited-kilometre warranty. While we’re at it, a hybrid variant would make enormous sense. 

So, a great car, but Audi could offer more to make it an even better proposition for buyers. 

Volvo has become a brand with a distinctive and consistent design language which embodies the kind of beautiful minimalism normally associated with Scandinavian brands.

I have always liked how Volvo says more with less design elements, with only gentle touches of chrome or gloss black, and a lack of over-the-top sporty pieces avoiding the temptation to over-sell the sporty potential of the brand’s range.

The C40 takes the small SUV formula, well established by its XC40 relation, and gets a bit weird and experimental. It’s slightly lower and has a more coupe-styled rear, with a strongly raked rear window giving it a sportier and more aggressive look than the rest of Volvo’s SUV range.

The styling is sold by an angular spoiler piece running atop the boot, and the rear light clusters have gone all minimalist, constructed of individual pieces rather than a single transparent housing, and they give a nod to the C30 hatchback which this car is the spiritual successor to, by name and nature.

The interior offers up no surprises, sticking to the formula Volvo has established across all of its current models. An effortlessly premium space with, again, a minimalistic dash dominated by the portrait touchscreen, the C40’s premium nature is confirmed by its finely patterned inlays, simple chrome pieces, and abundance of soft-touch surfaces.

The big upright vent fittings with clever rhomboid patterns on their adjustment dials are always a highlight piece of modern Volvos, and the pattern work is continued on the central volume adjust dial and even on the little rotating pieces of the light and wiper stalks. Clever.

Even the software is paired back on the multimedia suite and digital dashboard, with easy to use shortcuts and simple menus which suit the car.

Volvo might turn off some buyers with the more unconventional shape of the C40. But for those looking for a more traditional SUV it also offers the XC40 in the same two variants, and the Polestar 2 caters to those not looking for an SUV at all.

This updated Q2 looks almost identical to the previous one and really the only changes are subtle styling tweaks to the front and back of the car.

The front air vents (they aren’t real air vents on the Q2, but they are on the SQ2) are now larger and pointier and the top of the grille is lower. Around the back, the bumper now has a similar design to the front, with those pointy polygons set wide apart.

It’s an angular little SUV, full of sharp-edged shapes like some kind of acoustical wall in an auditorium.

The SQ2 just looks more aggro, with its metallic-trimmed air vents and beefy quad exhaust. 

The new colour is called Apple Green and it’s not really like any colour on the road – well not since 1951, anyway when this hue was hugely popular on everything from cars to telephones. It’s also very close to Disney’s “Go Away” green – look it up and then ask yourself if you should be driving a car that’s kind of invisible to the human eye.

I digress. Other colours in the range include Brilliant Black, Turbo Blue, Glacier White, Floret Silver, Tango Red, Manhattan Grey and Navarra Blue.

Inside, the cabins are the same as before, apart from the larger, sleeker media display, and there are some new trim materials, too. The 35 TFSI has silver inlays with a diamond paint finish, while the 40TFSI has aluminium door sills.

The Q2 has beautiful quilted Nappa leather upholstery, which goes beyond just covering the seats and to the centre console, doors and armrests.

All options offer well laid out and premium feeling cabins, but the disappointing part is that it's an older Audi design, which started out in the third-generation A3, launched in 2013, and still exists on the Q2, even though most Audi models, including the Q3, have the new interior design. This would bug me if I was thinking about buying a Q2. 

Have you thought about a Q3? It’s not that much more in price, and it’s a tad bigger, obviously. 

The Q2 is tiny, at 4208mm end to end, 1794mm wide and 1537mm tall. The SQ2 is longer at 4216mm long, 1802mm wide and 1524mm tall.  

The C40 is essentially a XC40 with a cropped down roofline, and there are some obvious downsides which this new shape brings.

The front seat throws no surprises, though, offering plenty of room for two adults with a welcome level of adjustability for the seat and wheel. The seats could be more comfortable, though, with a notable lack of padding in the base compared to some luxury (or even non-luxury) rivals. 

I’m a fan of the fabric trim which comes on both grades, bucking the trend of needing to have leather or leather-like trim for a car to feel ‘premium’.

The ample window space up front, including the massive glass roof helps the C40’s cabin feel spacious, but the view out the rear with its aggressive design is all but a very limited letterbox aspect, particularly if the rear seat headrests are in the upright position. 

While some controls are exclusively via touch interface, there is a physical volume dial, and shortcut buttons for the defogger functions. 

Temperature is controlled by touch, however, and the detail settings have some smaller toggle adjustments. Tricky to jab at when you’re on the move.

The digital dash is refreshingly simple, but minimally adjustable, with the choice of either a nifty navigation screen, a blank screen, or trip details being the only options.

Cabin storage is good but not stellar. There are bottle holders and big pockets in the doors, a set of two cupholders in the centre (beats the Polestar 2’s single cupholder), a small tray with a wireless charger under the multimedia screen, and a smallish console armrest box.

The rear seat is where the real problem exists. Unlike the XC40, the C40’s cropped roofline means my head was hard up against the roof (I’m 182cm tall). 

I did have decent knee room behind my own seating position, however the seat comfort in the back still isn’t as good as some rivals. 

The middle position is also compromised, thanks to the raised centre floor piece the C40’s platform needs to facilitate all-wheel drive in its combustion relations.

A bottle holder appears in each door pocket, and in a rare inclusion, there are heated outboard rear seats, adjustable air vents, and USB-C charging ports.

The boot has a quoted capacity of 413 litres with the rear seats up. The floor is comparatively high suggesting a smallish space when loaded with luggage cases, for instance. Stay tuned for a follow-up review so we can see how well it holds our three-piece demo set.

The floor itself has an adjustable, pop-up divider and multiple luggage hooks, making it quite versatile, and there is a cavity beneath which can hold your charging cables as well as the inflator kit in place of a spare wheel.

The Q2 is basically a current model Audi A3, but more practical. I’ve lived with the A3 Sedan and Sportback and while rear legroom is just as confined in those as it is in the Q2 (I’m 191cm and need to squish my knees behind my driving position) getting in and out is easier in the SUV, with its elevated ride height and taller door apertures.

The easier access helps enormously when helping kids into their child seats. In an A3 I need to kneel on the footpath to be at the right level to put my son into the car, but not with the Q2.

The boot space of the Q2 is 405 litres (VDA) for the front-wheel-drive 35 TFSI and for the SQ2 it’s 355 litres. That not bad, and the large hatch makes for a big opening, which is more practical than a sedan’s boot.

Inside, the cabin isn’t enormous, but rear headroom is good, thanks to the fairly high roof.

Cabin storage isn’t terrific, although the front door pockets are big and there are two cupholders up front.

Only the SQ2 has USB ports in the back for rear passengers, but all Q2s have two USB ports up front for charging and media – plus all have wireless charging for phones.

The Q2 entry grade is the 35 TFSI and it lists for $42,900, while the 40 TFSI quattro S line is $49,900. The SQ2 is the king of the range and lists at $64,400.

The SQ2 has never been to Australia before, and we’ll get to its standard features in a moment.

Aussies have been able to buy a 35 TFSI or 40 TFSI since the Q2 arrived in 2017, but now both have been updated with new styling and features. The good news is the prices have only gone up by a few hundred bucks,  compared to the old Q2.

Standard on the 35 TFSI are LED headlights and taillights, LED DRLs, leather seats and steering wheel, dual-zone climate control, Apple CarPlay and Android Auto, eight-speaker stereo with digital radio, front and rear parking sensors and a rear-view camera.

That was all standard on the previous 35 TFSI, but here’s what’s new: an 8.3-inch media screen (the old one was seven inches); a proximity key with push button start (great news); wireless phone charging (brilliant), heated exterior mirrors (more helpful than you’d think), ambient interior lighting (aww… pretty); and 18-inch alloys (heck yes).

The 40 TFSI quattro S line adds sports front seats, drive-mode selection, a power tailgate, and paddle shifters. The previous one had all that, too, but this new one has the sporty S line exterior body kit (the previous car was just called Sport not S line).

Now, the 45 TFSI quattro S line may appear  not to get much more than the 35 TFSI, but the extra money is getting you more grunt and an awesome all-wheel-drive system –  the 35 TFSI is front-wheel-drive only. If you love driving and can’t afford the SQ2, then $7K extra for the 45 TFSI is absolutely worth it.

If you have saved all your pennies and the SQ2 is what you’re zeroing in on, then here’s what you get: Metallic/pearl effect paint, 19-inch alloys, matrix LED headlights with dynamic indicators, the S body kit with quad exhaust, sports suspension, Nappa leather upholstery, heated front seats, 10-colour ambient lighting, stainless-steel pedals, auto parking, a fully digital instrument cluster, and a 14-speaker Bang & Olufsen stereo.

Of course, you get an incredible high-output four-cylinder engine, too, but we’ll get to that in a moment.

Great news here, the C40 can be chosen with two powerful layouts, either a front-wheel drive 170kW/330Nm set-up, or a dual-motor all-wheel drive arrangement, able to make use of nearly double the power at 300kW/660Nm. The dual-motor is capable of sprinting from 0-100km/h in just 4.7 seconds.

The front-drive is backed by a 69kWh battery allowing it a 434km range, while the dual motor ups the battery size to 78kWh to allow a 420km driving range.

There are three grades and each has a different engine. 

The 35 TFSI has a new 1.5-litre four-cylinder turbo-petrol engine making 110kW and 250Nm; the 40 TFSI has a 2.0-litre turbo-petrol four making 140kW and 320 Nm; and the SQ2 has a 2.0-litre turbo-petrol as well, but it puts out a very impressive 221kW and 400Nm.

The 35 TFSI is front-wheel drive, while the 45 TFSI quattro S line and SQ2 are both all-wheel drive.

All have a seven-speed dual clutch automatic transmission – nope you can’t get a manual. There are also no diesel engines in the line-up.

I drove all three cars and, from an engine perspective, it’s like turning the ‘Smile Dial’ up from Mona Lisa in the 35 TFSI, to Jim Carrey in the SQ2, with Chrissy Teigen in between.

Surprisingly, energy consumption is quite high for both C40 variants. The single motor is the more efficient of the two, consuming 16.8kWh/100km on the more lenient ADR testing schedule, while the dual motor officially consumes 22.2kWh/100km to the same standard. I saw around 23kWh/100km overall in my short test of the dual-motor variant.

Energy consumption could be better for both, as I have achieved more consistently impressive results particularly from Hyundai and Kia electric cars.

Where the C40 is more impressive though is its charging specs, which are exactly where they need to be for a car this size. On a rapid DC charger, the C40 can charge at a rate of 150kW meaning a 10 - 80 percent charge in 40 minutes for the dual motor, or 32 minutes for the single motor.

On the slower AC standard, the C40 charges at a rate of 11kW. Expect a 10 - 80 percent charge time of around five or six hours on this standard. 

The C40 uses a European-standard Type 2 CCS charging port, although it misses out on the handy two-way charging feature offered by some rivals.

Audi engines are superbly modern and efficient – even its monster V10 can shut down cylinders to save fuel, and so can the new 1.5-litre four-cylinder engine in the 35 TFSI. Audi says that over a combination of urban and open roads, the 35 TFSI should use 5.2L/100km.

The 40 TFSI is thirstier at 7L/100km, but the SQ2 demands a bit more at 7.7L/100km. Still, not bad. 

What’s not good is the lack of a hybrid, PHEV or EV variant of the Q2. I mean the car is small and ideal for the city, and therefore a perfect candidate for an electric version. Not having a hybrid or EV is why the Q2 model range doesn’t score well for its overall fuel economy.

If you’ve driven any kind of XC40 or even a Polestar 2 before, the C40 will offer no surprises. It’s pretty much exactly the same from behind the wheel with a few subtle tweaks.

This is a very good thing. The C40 is quiet, easy to drive, and its electric motor and regen system offer a smooth single-pedal experience.

It is also alarmingly, overwhelmingly, rapid. While its massive set of batteries under the floor make it feel heavy off the line in stop-start traffic, sticking your boot into the accelerator will remove any doubt, particularly in the dual-motor variant, that this Volvo means business.

The dual-motor also has an incredible torque-vectoring system, making it extremely difficult to elicit so much as a squeak from its tyres. It also feels as though torque is distributed quite evenly between its two driven axles, making it feel neither prone to over- or understeer.

This has the effect of making the C40 feel somewhat indestructible in the corners, with absurd levels of grip. 

The same feeling is present in top-spec versions of the Polestar 2, only the feeling of ever-present weight is more noticeable in the higher-riding C40, which can make it unsettling to take corners at the kinds of speeds it is capable of.

The steering tune is interesting. Volvo offers two software-controlled modes, either heavy or standard, and the standard mode is heavy enough. 

Despite its electrical assistance, the wheel does continue to offer some organic feedback, making the C40 a pleasure to steer on countryside roads.

The ride is also surprisingly good, despite massive wheel options. I was impressed how easily the C40 handled most bumps and undulations, communicating little to the cabin. 

The ride can approach its limits with such big wheels and the weight of its batteries, generally these are communicated via unsettling thuds from underneath the car. Regular undulations at higher speeds also had the C40 bouncing around a little.

On the whole, though, the cabin is kept relatively insulated and serene, adding an element of total confidence, similar to that offered by Teslas, whilst offering better ride quality with a softer edge. At higher speed, at least on the 20-inch wheels, road noise does pick up, however.

In terms of electric driving, there is a single adjustable setting for regen. The car either offers a full single pedal mode with maximum regenerative braking to bring the car to a halt with the motor alone, or a ‘standard’ mode which tones the regen down and offers it blended in via the brake pedal. 

Single pedal mode is more efficient. I suggest you stick to it if you want to make the most of this car’s efficiency.

I was surprised to have so few complaints about the C40’s drive experience. This is a balanced and capable EV which is yet another example of how even vehicles which use combustion platforms are improved out of sight by full electrification.

When it comes to the driving part, Audi can almost do no wrong – everything the company makes, whether it’s low powered or rip-your-face-off fast, has all the ingredients for engaging driving.

The Q2 range is no different. The entry-grade 35 TFSI has the least grunt and, with its front wheels pulling the car along, it’s the only one in the family that’s not blessed with all-wheel drive, but unless you’re doing laps at a track you’re not going to be wanting more power. 

I drove the 35 TFSI for more than 100km on the launch, through the country and into the city, and in all situations, from overtaking on highways to merging and slow traffic, the most affordable Q2 performed well. That 1.5-litre engine is responsive enough and the dual-clutch transmission changes swiftly and smoothly. 

Superb steering and good visibility (although that rear three-quarter view is slightly obstructed by the back pillar) makes the 35 TFSI easy to drive.

The 45 TFSI is a good mid-point between the 35 TFSI and the SQ2 and comes with a very noticeable bump in oomph, while the extra traction from the all-wheel drive is a reassuring addition. 

The SQ2 isn’t the hardcore beast you might think it is – this thing would be super easy to live with daily. Yes, it has firm sports suspension, but it’s not overly hard, and that engine, which nudges almost 300 horsepower, doesn’t feel like a Rottweiler on the end of a leash. If anything, it’s a Blue Heeler that loves to run and run, but is happy to take it easy and get fat.  

The SQ2 is my pick of the bunch, and not just because it’s quick, agile, and has an intimidating growl. It’s also comfortable and luxurious, with sumptuous leather seats.  

The Q2 was given the maximum five-star ANCAP rating when it was tested in 2016, but by 2021 standards it is light on advanced safety tech.

Yes, AEB with pedestrian and cyclist detection is standard on all Q2s and the SQ2, and so is blind-spot warning, but there’s no rear cross traffic alert or reverse AEB, while lane-keeping assistance is only standard on the SQ2, along with adaptive cruise control.

For a car that will most likely be purchased by younger people, it doesn’t seem right that they’re not being protected as well they would be in more expensive Audi models.

For child seats, there are two ISOFIX points and three top-tether anchor mounts.

A space-saver spare is under the boot floor.

The C40 is covered by Volvo’s five year and unlimited kilometre warranty, with a separate eight-year, 160,000km warranty for the battery. There is also eight years of roadside assistance attached.

It is pleasing to see the service intervals for the C40 are long, as they should be for an electric car with so few moving parts, set at two years or 30,000km. 

The first 24 month service is free of charge, and Volvo tells us service pricing after this period will average out to around $100 a year ($200 per visit).

The pressure for Audi to move to a five-year warranty must be hugely intense, with Mercedes-Benz offering one, along with pretty much every other mainstream brand. But for now, Audi will only cover the Q2 for three years/unlimited kilometres.

As for servicing, Audi offers a five-year plan for the Q2 costing $2280 and covering every 12-month/15000km service over that time. For the SQ2, the cost is only a fraction higher at $2540.