Volvo XC60 vs Lexus Lm350H

What's the difference?

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 Lexus LM is going to be a niche model. This was not designed to appeal to people that may have bought a Toyota Tarago back in the day, or even a Kia Carnival now.

It has a specific purpose for ferrying people around in absolute comfort and at that, it succeeds in a big way.

It’s just a bonus that it’s great to drive.

Welcome to the automotive equivalent of a business class airline suite.

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

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.

Look, people movers are not considered the sexiest of automotive body styles, but that’s changing.

The Kia Carnival and Hyundai Staria are examples of good MPV design.

And the Lexus LM steps it up again. 

It is based on Toyota’s TNGA-K architecture that underpins a bunch of Toyota and Lexus models, including the Lexus RX, and it measures a whopping 5.1 metres long and has a three-metre wheelbase.

It shares its underpinnings with the latest generation Japanese-market Toyota Alphard, which is a cult hit in Australia among the grey import set.

The front-end design is bold, with the latest take on Lexus’ big ‘spindle grille’, pinched slimline headlights and a stubby nose. 

I am a big fan of this design. It is far more than a box on wheels and it has quite a bit of presence. 

The interior design up front is modern Lexus, with a few familiar Toyota touches, and while it’s not exactly minimal, it’s still visually appealing.

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.

While most of the fun happens in the second row of the Lexus LM, there is a lot to like in the front compartment.

The dash is dominated by a large touchscreen that houses Lexus’ latest multimedia setup. The logical menu and uncomplicated sub-menus ensure this is an easy system to navigate. Speaking of, the in-built sat-nav is one of the better systems I have experienced. 

Comfort isn’t just the domain of the second row - the driver’s seat is very supportive and comfortable, with power adjustment.

There’s plenty of glass including a smaller front quarter window that helps eliminate front blind spots, so forward visibility is exceptional. Rearward visibility is aided by the digital rear-view mirror that is designed to ensure privacy for second and third-row occupants. You don’t want the chauffeur spying on you while you’re sleeping, do you?

The other big tick for me is the driving position. Other people movers, namely the Hyundai Staria and Mercedes-Benz EQV, have very low window lines and it leaves you with a feeling of sitting on the car, rather than in it. I am sure it helps with extra light and it probably makes it easier for kids to see out of, but from a driving perspective, I find it a little disconcerting.

But the LM has flipped that. The front compartment is designed in such a way that it feels like a cockpit that you’re ensconced in. This helps the driver feel more connected with the car, and in the LM it feels like you’re sitting in the driver’s seat of a sporty sedan, not a five-metre bus. Very well done, Lexus.

And now to the main event - the second row.

Where to begin. Let’s start with space. Because there is so much of it. Unsurprisingly given the seating layout, there is an unending amount of head, leg, knee, bum, shoulder and whatever-else room. I can’t imagine anyone complaining about space back there.

Also, getting in and out is a breeze thanks to the sliding power doors on both sides. These can be opened from the front seat, and via several buttons in the rear.

Those captain’s seats are plush. Not quite Benz S-Class plush, but still.

They are adjustable six ways - power adjustable, of course - and they’re heated and ventilated. They recline almost flat, too, if you need a nap on the way to the country estate. And while you do that you can look up through the split sunroof, or close the shade a number of ways.

Is there a massage function? Of course there is a massage function. And it’s not bad. You can choose two settings - weak and firm.

Adding to the feeling of a business class airline seat, there is a fold-out table in the armrest, although it’s a smallish one. And there is dual-zone climate control in the rear.

There is a roof-mounted control panel for things like climate, sunshades and sunroof blinds, but much of this can also be controlled by the Apple iPhone-like devices clipped into both rear seats. These are closer to the seats, so it is easier to access than the roof.

Another function in the device is the Climate Concierge that features different modes - Dream, Relax, Focus, Energise. Depending on which one you choose, it alters the seat settings, massage, climate and lights to suit.

I love the massively wide side windows that are tinted (or privacy glass), too.

Other amenities include map pockets, knee and roof-mounted air vents and a 14.0-inch display screen that retracts from the roof and connects to an HDMI cable, allowing you to watch whatever you want.

The third row is not as appealing as the second. It is technically a three-person row, but the width and the fact that it has a sizeable gap in the centre suggests that this is best thought of as a six-seater van.

The seats are not as plush of course, so you might not want to spend too much time in that row unless you are a small child. But you do get USB-C ports, cupholders, air vents, lights, sunglasses holder, power side shades and grab handles.

Getting in and out of the third row can take a while. It’s all power adjustable, so you don’t have to lift anything heavy - but it takes a while for the second row seats to move forward and up.

With all seats in place the cargo space is limited. In fact, it’s just 110 litres.

That’s similar to what you get in a seven-seat SUV. But it did fit all our overnight luggage easily.

Drop the rear row and that expands to a maximum of 1191 litres in the 350h or 752 litres in the 500h.

All grades have a space-saver spare wheel.

From launch there will be two versions of the LM350h Sports Luxury on offer - front-wheel drive and all-wheel drive, priced from $160,888 and $165,888 before on-road costs respectively.

They both have seven seats across three rows and share the same four-cylinder hybrid powertrain, but an even more high-end version is on the horizon.

The LM500h will land in January 2024, priced from $220,888, and it adopts a newer more powerful hybrid powertrain. Something else that sets the LM500h apart is the seating layout - it is a four-seater. Behind the driver and front passenger compartment are two big captain’s chairs that recline flat if required. Decadent luxury. Or so the pictures suggest. We will have to wait until the New Year to sink into the sumptuous seats.

Given the positioning and interior layout, the LM will probably not appeal to people looking at a Kia Carnival, or who would have opted for the departed Toyota Tarago. It will, however, appeal to large families that aren’t short of a dollar, airport limo operators, and even as tourist transport.

Thankfully, there’s a substantial amount of standard gear fitted as standard in the LM.

The only difference in spec between the two 350h grades is the addition of all-wheel drive. Otherwise you’ll find keyless entry and start, front heated seats, automatic retractable side steps, power opening side doors, rear privacy glass, a pair of sunroofs, and semi-aniline or L-aniline upholstery.

Tech-wise, there is a digital rearview mirror, and a 14.0-inch touchscreen, a 12.3-inch digital instrument cluster, a head-up display, seven USB ports, a smartphone charger and a rear 14.0-inch multimedia display.

The 500h adds niceties like a separation partition with elevating and dimmable glass, that doubles as a 48.0-inch widescreen display to watch films and TV, or take conference calls with. It also gets two partition glove boxes, a pair of umbrella holders, two second-row phone chargers, a 23-speaker Mark Levinson 3D audio system and more.

In terms of rivals, there really aren’t many other luxury people movers on the market. Aside from the Mercedes-Benz V-Class and all-electric EQV, there are higher-grade versions of the Volkswagen Multivan, and the LDV Mifa 9 EV.

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.

There are two hybrid powertrains available. Coming next year, the LM500h combines a 2.4-litre turbocharged petrol engine and a hybrid setup, making for power and torque of 202kW and 460Nm respectively. It is all-wheel drive and is paired with a six-speed automatic transmission.

The LM350h comes with a 2.5-litre naturally aspirated petrol engine and a parallel hybrid system, offering up a total system output of 140kW and 239Nm. The 350h comes in front or all-wheel-drive guise and uses a continuously variable transmission (CVT).

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.

As you’d hope with an all-hybrid line-up, the LM excels when it comes to combined cycle fuel efficiency. The 350h FWD sips just 5.5 litres per 100 kilometres, while the AWD version is 5.6L/100km. The 500h is a little thirstier at 6.6L. 

Our drive was so brief we did not get to record an on-test fuel figure.

The theoretical range of the LM, considering the 60-litre fuel tank and 5.5L/100km (350h) and 6.6L/100km (500h) fuel consumption figures is about 1000km.

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.

As mentioned earlier, I spent much more time in the second row as a passenger than I did behind the wheel of the LM350h. But it was enough time to capture some initial high-level drive impressions.

But let’s start in the rear. The ride in the second row is comfortable - as you’d hope. Our trek from Melbourne’s inner north down to the Mornington Peninsula included a lot of freeway, which was smooth. The only thing that disturbed the peace was a chunky bridge join that caused a bit of a thump. But we were hardly disturbed. 

Back in the driver’s seat, there’s a lot to like about how the LM350h drives. First of all, it feels smaller on the road than its ample dimensions would otherwise suggest. It even feels relatively light on the road. 

After the LM, I drove a Mercedes-Benz EQE SUV that has a similar kerb weight (the Lexus is about 2.4 tonnes), and the LM felt lighter.  

The hybrid powertrain is responsive enough, offering decent acceleration from a standing start. The more potent 500h will of course be quicker.

The transition from electric to petrol propulsion is pretty smooth in Lexus (and Toyota) models these days, and the additional noise-deadening materials in the LM ensure it’s subtle.

The 2.5-litre petrol engine is really only noticeable when accelerating hard, and the CVT a slight drone, but it’s in no way unpleasant. 

Otherwise it’s a superbly refined and quiet cabin on all but the absolute worst road surfaces. Whisper quiet power windows adds to that feeling of luxurious refinement.

Given the brief time behind the wheel, we didn’t get to test the handling capability of the LM, so that might have to wait for a review in the New Year. 

The steering is heavily weighted and doesn’t feel overly responsive, but it’s perfectly suited to this sort of vehicle.

That supple ride we experienced in the rear was also evident behind the wheel.

This was especially impressive on a couple of pock-marked peninsular back roads. The ride is also much more compliant than the Mercedes-Benz EQV I tested early in 2023.

The LM is yet to be crash tested by ANCAP, and it is unclear if it will be given the fact that it’s a niche model. However, as with other current Lexus models, it has a long list of standard safety gear.

The safety suite, including intersection assist, and a pre-collision system with vehicle, pedestrian, bicyclist and daytime motorcyclist detection.

It also comes with emergency steering assist, full-speed radar cruise control, ‘Curve Speed Reduction’, ‘Lane Trace Assist’ with lane-departure alert, automatic high beam, ‘Road-Sign Assist’ (speed signs only), ‘Emergency Driver Stop System’, a blind-spot monitor and rear cross-traffic alert.

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.

When you buy a Lexus, you get a bit more than a car. The brand has a customer loyalty program - Lexus Encore - and depending on what model you buy, you are eligible for some pretty cool discounts, bonuses and experiences. 

There are three tiers, depending on your model. UX, NX, RX and ES fall under regular Encore, and electric models the RZ and UX300e sit beneath Electrified Benefits. But the LM, as well as the LS, LC and LX are under Encore Platinum - the top tier. 

That means access to the ‘On Demand’ program that allows access to another Lexus model for a few days or longer. So if you own an LC Convertible but need an RX for a few days to ferry people around, that’s all free. There’s valet parking service loans and more.

It also includes upgrades at Lexus partners. Our launch took us to Jackalope Hotel on the Mornington Peninsula, which is a Lexus partner, and you can get a bunch of extras here as a Lexus owner that other guests won’t get.

In terms of other ownership details, the LM is covered by a five-year, unlimited-kilometre warranty, and the servicing schedule is every 12 months or 15,000km.

Lexus is yet to announce the capped-price servicing details for LM, but it is expected to cover five years, and should be in the vicinity of approximately $700 per service.