Volvo XC90 vs BMW IX3

What's the difference?

The first-generation Volvo XC90 remained on sale for 12 years in Australia before being replaced by the handsome second-gen version that recently clocked up a decade of sales.

There’s a reason for the longevity. People love the Volvo XC90. It is a reliable seven-seat family-friendly SUV with a premium bent. You’ll spot loads of these at fancy private school drop off.

Volvo has extended the life of the second-gen XC90 with a significant late-life update. It adopts some features from its stablemate, the similarly sized and positioned EX90 electric SUV.

It doesn’t get a fully-electric powertrain but you have the choice of a mild-hybrid grade that acts as the range opener and the well-equipped T8 Plug-In Hybrid I’m testing.

Interestingly, a number of this car’s rivals have had their lives extended, too. As many carmakers pour billions into EVs, they’ve taken to delivering major updates to older internal combustion platforms rather than developing all-new underpinnings. The Audi Q7 and BMW X5 are other examples of this.

For the update, Volvo has ushered in a front-end design refresh, a fresh take on the interior, new multimedia and safety tech, a light tweak to suspension and new colours and wheels.

But is this enough to keep premium SUV buyers interested? Let’s find out…

BMW added a new iX3 base model in September last year as a crafty way to navigate the government's increased luxury car tax (LCT) threshold for fuel-efficient vehicles.

The Bavarian carmaker now has six electric cars under the $91,387 threshold with major benefits for those looking to purchase a car on a novated lease program – not to mention less strain on the hip pocket for others.

This particular iX3 M Sport being made in China helps the pricing equation, but it remains a complete specification with plenty of gadgets, features and luxury touches.

A new X3 is due in 2025 but an electric replacement for the iX3 isn't expected until 2026 when it will sit on the Neue Klasse platform and be a very different beast.

That means if you're after an electric mid-sizer from a German brand, this iX3 is what BMW has to offer. With that in mind, it's time to take a look at BMW's most affordable mid-size electric SUV to see if it's a good deal.