Volvo XC40 vs Audi Q3

What's the difference?

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.

So is this new Q3 good enough to remain Audi’s number one choice? In a word, yes.

Audi has resisted the temptation that some brands fall into by making too many changes to a proven sales performer. This new Q3 isn’t radically different from the old Q3, but it has improved in almost every way.

It isn’t different enough to widely expand its appeal to a new wave of customers, but there’s no reason it won’t remain Audi’s most popular choice for the foreseeable future.

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

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.

The brief to the designers was seemingly pretty simple - don’t mess with a good thing.

According to the company, they want it to be recognisable as an Audi from 100m away, but at the same time, it makes sense not to make any radical changes to a design that is clearly a hit with buyers.

There’s still a new grille, which is slightly larger, while the daytime running lights (DRLs) are now mounted high, on the top corners of the front fascia.

Audi prides itself on its lights and the Q3 features multi-segment DRLS, with dynamic light effects, plus the rear badge lights up red with the tail-lights are turned on.

Digital matrix LEDs are available as an option on the quattro grades, which is a first for such a small Audi. While based on the technology already deployed in the bigger, more expensive Audi models, this is an updated system with micro LED matrix capabilities that are better able to light up the road ahead without blinding cars ahead or oncoming.

One very noticeable element to the design of this new Q3 is the size - which hasn’t really changed. Audi has resisted the temptation that so many brands have to upsize a compact model and has instead retained the same size that buyers clearly find appealing. It is slightly longer, approximately 4cm, but is still unmistakably a Q3 in looks and size.

Inside the Q3 is a different story, with the designers clearly empowered to create more change. The elements remain similar, but there have been more dramatic changes compared to the exterior to keep the Q3 looking contemporary and luxurious.

For example, there are still two large screens, just like the old model, but the virtual cockpit and multimedia screen are integrated into the dashboard together and more prominently, moving higher up the centre fascia.

It works well, as the interior looks and feels premium, and very much an Audi, albeit on a smaller scale.

To cap it off there are four interior colour packages to choose from, plus four different choices for the inlays, including two real wood options and an aluminium trim.

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.

The biggest change to the interior is the technology, with a new multimedia interface with new, larger tiles as well as new ‘Control Unit’ for the key driving functions.

The ‘Virtual Cockpit’ display is much simpler, with a nice, clean look, plus the option to have the satellite image on the screen, whether you’re in navigation or not. The multimedia screen is a good size (12.8 inches) and the menus are easy to navigate. The decision not to have physical controls for the climate control is disappointing, but thankfully there is a volume/on-off dial for the sound system.

The most notable difference is the so-called ‘control unit’ that integrates the indicators, wipers and gear selector on a single ‘bar’ mounted to the steering column. It’s another example of modern cars reinventing something we’ve all become accustomed to, but after a day of driving it quickly becomes second nature to adapt to the slightly different controls.

While it may be the same size, Audi has managed to find more room inside, particularly the rear, by redesigning the door pockets and sculpting out the seat backs. It’s still not the roomiest cabin, but the rear seats will be fine for younger families, couples and singles.

Another plus is the 40:20:40 split/fold rear seats for maximum practicality and adaptability, while all three have child seat anchor points (although if you do have three small children, I wouldn’t be recommending an SUV this size). 

As for the boot, because Audi only measures to the top of the seats, it measures 488L in both the SUV and Sportback variants, so you’re not missing out on day-to-day practicality with the sportier-looking roof. However, if you drop the rear seats the cargo capacity expands to 1386L in the SUV but only 1289L in the Sportback.

A key to the popularity of the Q3 is the variety of choices available to customers. By offering a mixture of variants at different price points and with different levels of performance expands the appeal of the Q3 to as many potential buyers as possible. To that end there are no less than 10 variants to choose from, and that’s just for now, with more likely to join in the future.

At this stage the range includes both SUV and Sportback body styles, the choice of a 110kW, 150kW or 195kW engine with front- or all-wheel drive (or quattro, as Audi calls it). While still not confirmed, both a plug-in hybrid and a high-performance RS Q3 are both likely additions sometime in the future.

Starting with the 110kW model, standard equipment includes 18-inch alloy wheels, adaptive LED headlights, ambient interior lighting, keyless entry and ignition, leather-appointed upholstery and a 10-speaker sound system. The 110kW SUV is priced from $61,600 and the Sportback from $64,600.

Moving up to the 150kW quattro variant adds adaptive dampers, which the 195kW models also get, as well as 19-inch alloy wheels, and there’s an optional premium Sonos system for the more powerful models and a panoramic glass sunroof and a head-up display as part of a $4400 option package. Pricing for the 150kW begins at $70,200 for the SUV and $72,700 for the Sportback, while the 195kW is priced from $81,900 (SUV) and $84,400 (Sportback).

There’s also a Launch Edition available which adds between $5400 and $4400 to the price (depending on variant), but includes the S line exterior styling package, black exterior highlights, metallic paint, red brake callipers, a sound actuator and adaptive dampers. As the name implies, these are only available for launch of the new model, so will only be produced for the first two months.

It should also be noted that standard 110kW models won’t arrive until mid-year, once the factory in Europe is done producing the Launch Edition variants.

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!

As mentioned above, there are three powertrains to choose from initially, with talk of a plug-in hybrid and hi-po RS Q3 just that (talk) for now.

The entry-level SUV and Sportback get a new 1.5-litre four-cylinder mild-hybrid, turbocharged petrol engine, which makes 110kW/250Nm and sends all that performance to the road via the front wheels through a seven-speed, dual-clutch automatic transmission.

Next up is the TFSI 150kW quattro, which is a bigger 2.0L turbo-petrol four-cylinder, producing (you guessed it) 150kW and 320Nm. It also has a seven-speed dual clutch but also unsurprisingly has a quattro, aka all-wheel drive.

Finally there’s the TFSI 195kW quattro, which has the same engine but tuned to make 195kW and 400Nm, also with the seven-speed, dual-clutch auto and all-wheel drive.

This is naturally the quickest Q3, at least until the RS Q3 arrives, taking just 5.7 seconds to accelerate 0-100km/h, compared to 9.1 seconds for the 110kW and 7.1 seconds for the 150kW.

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.

While it may only be a mild hybrid, Audi has done its best to make the TFSI 110kW as fuel efficient as possible. To that end, in addition to the hybrid help this new 1.5-litre engine also features cylinder-on-demand.

The result is a claimed combined cycle fuel use figure of 5.7L/100km for the entry-level model.

Naturally the more powerful engines require more petrol. The 150kW models are rated at 7.3L/100km, while the 195kW has a claimed 8.1L/100km.

It’s worth noting that all three engines require a minimum 95 RON ‘premium’ fuel, which will only add to the cost at the pump in these times of high prices.

The 110KW/150kW models are fitted with a 55-litre fuel tank, while there is a bigger 60-litre tank for 195kW. That means theoretical driving ranges of approximately 960km for the 110kW models and just over 740km for the 150kW and 195kW offerings.

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.

While it may not be an RS model or a more dynamic sedan, part of the price premium you pay for an Audi is a more polished driving experience.

With that in mind, what Audi calls ‘Progressive steering’ (which is a variable ratio steering rack) is now standard across the range. This decision was driven by a desire to make the Q3 feel ‘more hatch-like’ to drive, being more responsive to driver inputs.

It certainly felt quite nice to drive at the launch, where we drove across a wide variety of conditions, including long stretches on winding mountain roads. The 110kW Launch Edition was enjoyable to drive in these conditions, even if the other two options offer a sportier driving experience with their extra power and all-wheel drive.

It should be noted again, we only drove Q3s fitted with adaptive dampers as those are included on the Launch Edition, so we can’t tell you how the true entry-level TFSI 110kW model rides and handles.

One minor concern was there were some rattles in one of the three cars we tested, centred around the dashboard and front doors. It’s notable because we have experienced similar potential build-quality issues with Volkswagen and Skoda products recently. This raises some questions about an area Volkswagen Group products have traditionally excelled in.

Having said that, it was only a problem in one of the three cars we drove, so it could be an isolated incident. But it’s something we will have to keep an eye and ear open to in future test drives.

Audi claims this is the safest Q3 ever, with more safety equipment than before to ensure it meets modern customer demands.

There’s a 360-degree camera setup, reversing camera, adaptive cruise control and a host of other active safety features. But perhaps more importantly than just having these systems, they are locally tested and calibrated for local conditions.

This has quickly become an area where the premium brands are separating themselves from the mainstream. In the case of the Q3 we found that the lane keeping assist and adaptive cruise control worked better than your average mainstream model, so the local testing appears to have paid off.

Another safety feature worth mentioning is the new parking assistance system, which now includes ‘reversing assist’. This new technology can remember the last 50m of your trip and reverse backwards without your help. There’s also ‘trained assist’, which can learn up to five specific parking situations, that you can program and save. So, if you have a particular driveway or parking spot you can teach the car once and it can park itself in future.

The Q3 comes equipped with enough safety to score a maximum five-star rating from Euro NCAP and ANCAP. However, in a confusing twist, this is based on testing done to the 2025 protocols, even though the Q3 has only gone on sale in 2026. So future five-star ANCAP models will have been tested to a theoretically higher standard, which is something to consider when comparing models from other brands.

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.

The Q3 is covered by Audi Australia’s standard five-year/unlimited kilometre warranty. This includes five years of roadside assistance too.

There is a standard five-year servicing plan for $3300, which is the same as the outgoing model, with servicing required every 12 months or 15,000km, whichever comes first.

Audi has an expansive, nationwide dealer network befitting its place as an established sales leader in the premium space.