Volvo XC40 vs Peugeot 408

What's the difference?

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.

Unveiled globally in 2022 before arriving here in late 2024 as a plug-in hybrid GT, the Peugeot 408 has been a niche player for the long-established French brand with less than 100 examples finding homes here last year.

But 2025 marked the transition to a new ‘plug-less’ mild-hybrid powertrain for the mid-size crossover-style SUV with the hope it may take a bigger swing at segment heavyweights.

We spent a week with the current 408 GT Premium Hybrid to see if its efficiency-focused petrol-electric set-up has what it takes to win a spot on your upscale five-seat SUV shopping list.