Volvo XC90 vs BMW M235i

What's the difference?

It’s a credit to Volvo that the XC90 feels like a new car, even with its older underpinnings. This latest update has successfully addressed areas that needed the most attention, namely the multimedia system, interior and exterior design. The electric driving range now feels somewhat old school compared to the numbers some manufacturers can achieve these days. A lot of PHEVs now exceed 100km EV range and buyers are starting to expect that. And setting up the third row takes way too much effort to want to do it regularly. The new Volvo XC90 is a comfortable, engaging and properly premium family SUV and the updates have only improved what was already a solid offering.

The badge might say one thing, but the 2 Series Gran Coupe sticks to the time-honoured template of being a compact yet comparatively practical three-box, four-door sedan, complete with a big boot.

More importantly, it drives and behaves like a BMW – which means sufficient-to-strident performance depending on grade, athletic dynamics and pleasing refinement on one hand, as well as a stiff price and a hard ride on the other.

A true BMW in name and nature, then..

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

Back in early 2015, I attended the international launch of the second-generation Volvo XC90. At the time I thought it was a handsome SUV, with Volvo successfully interpreting what is essentially a big people-hauling box on wheels with typical Scandinavian flair.

There’s been a facelift since then, but this latest refresh brings the XC90 bang up to date.

New elements include a modern take on the 'Thor's Hammer' LED headlights, and a new bonnet and grille with an updated diagonal logo spread across the car's face. At the rear the only change is slightly darker tail-lights.

The new grille in particular looks great, and with all of the blacked-out elements of the T8 - grille, lower air intakes, parts of the apron, mirror caps, roof rails and window surrounds - it looks quite cool, especially contrasted with the test car's 'Crystal White' paint. It has elevated the overall look.

Inside, Volvo has made big changes, mostly with the dash and console. It retains the familiarity of other Volvos, but is much more in keeping with its new all-electric EX90 sibling.

It still has a horizontal theme, but with cool new vertical air vents. The new multimedia screen fits well into the dash layout, and isn’t over sized. It’s the ideal size at 11.2 inches. There are a few buttons underneath but not many.

The mix of materials used at the front of the cabin includes ‘Grey Ash’ wood, piano black, chrome, metal-look speakers, grey fabric and soft touch as well as hard plastics. It sounds like it would be too much but it works well.

Volvo has always been a leader when it comes to car seats and the new XC90 is no exception. The beautifully designed ventilated charcoal Nappa leather seats look and feel stunning. The tiny Swedish flag is a nice touch, too.

The engine start/stop button and the crystal selector add a touch of glamour to the cabin. Overall, the XC90 feels properly premium inside, still with a Scandinavian bent. Just lovely.

BMW is calling the F74 a new-generation 2 Series Gran Coupe, and there have been obvious and even profound changes throughout and underneath, including to some of the sheetmetal.

But this is not an all-new car by any stretch, with the glasshouse, doors and roof amongst many other body items carrying over from the F44.

That now remarkably Kia Cerato-esque nose ushers in new LED lighting motifs and an updated kidney grille, but whether they sit easily with the rest of the car is debatable. Redesigned tail-lights, different colours and new alloys make up the majority of the exterior changes.

Betraying the latest 2 Series Gran Coupe’s newness claims are near-identical dimensions, with that redesigned front end and bumpers contributing to a 20mm increase in the F74’s 4546mm length, while revised suspension and damper settings help account for the 25mm boost in height (to 1445mm). The BMW’s 1800mm width and 2670mm wheelbase remain the same.

There’s a higher level of newness to be found inside.

Any dedicated seven-seat family SUV needs to nail practicality and when it comes to the Volvo XC90, there are clear pros and some surprising cons.

One of the many pros is the seats. As mentioned, they look schmick, but are also supremely comfortable and offer the perfect level of bolstering and support. The T8 has a seat adjustment memory function that can be programmed into the driver profiles that also tailors other functions to suit different drivers.

The quality of the materials and build quality of the cabin is largely impressive. Even the damping of the indicator stalk has a feeling of high-end quality.

Volvo’s digital instrument cluster is clear and easy to navigate, once you work out what the buttons on the steering wheel do. They don’t have words on them so it takes a while. The driver’s manual comes in handy for this.

The big story in the cabin is the new 11.2-inch multimedia display. Volvo uses a Google platform and the car comes with Google Services which includes Google Assistant voice control, Maps and Play.

I’m a fan of Apple CarPlay and once I have assessed a car’s in-house multimedia system I often defer to CarPlay. It’s simple and familiar. But aside from using CarPlay to connect once, I used Volvo’s system for the vast majority of my time with this car.

Logging into your Google account means your favourites come up on the map and there is no downside to functionality. If I had the car for longer I would've added Spotify to the system and logged into that, too, but I was happy listening to digital radio on the phenomenal 19-speaker Bowers & Wilkins sound system.

The screen takes some familiarisation, but once you understand the home keys and how to switch between apps, it’s a pleasure to use. It has a clear layout, nice graphics and is responsive. Yes, the air con controls are mostly housed in the screen, but if you tap the lower part of the screen the entire climate menu appears. It is light years ahead of Volvo’s previous screen set-up.

Most functions are housed in the screen, although there are buttons just under the screen for volume and audio on/off, front and rear demisters, hazard lights and a button to open the glove box.

Storage up front is just okay. The console houses shallow cupholders and a handy upright phone holder, as well as the device charging pad. It’s a shame there’s no under console storage, but the transmission tunnel might be too chunky for that.

The shallow central bin houses two USB-C ports and a 12-volt outlet. Bottle storage is decent in the front door cards.

The panoramic sunroof only has a sheer blind (it’s powered) which is less than ideal in a country like Australia. It’s been fine in winter but I’m curious to know what it’s like in the height of summer.

The second row features manual window blinds to keep your little ones cool.

There’s some back support for the second-row seats but the base is flat. Some of the seat fabric in that row looks like it doesn’t quite fit, but I think that’s the nature of the leather with the intricate designs.

In terms of space, there’s ample leg, toe and headroom, and the rear backrests recline for extra comfort on long trips. The bases roll forward and back and the seats are split 40/20/40.

Kids will likely fight over who has to sit in the middle seat because the combination of an intrusive transmission tunnel and the rear of the front centre console protruding into the space means it is not a great seat.

Occupants have access to chest and knee-level air vents, heated seat and digital climate controls, map pockets, two USB-C ports and a central fold-down armrest with a fiddly cupholder mechanism. The rear doors will only house small, narrow bottles.

Accessing the third row of the Volvo is challenging. For starters, to move the second row seats forward you need to use the lever at the top of the seat and the roller under the base to move them. And they are heavy seats. That leaves just enough of an aperture to get into the third row.

But first you have to raise the third row. Sadly there’s no lever in the boot area to quickly raise or lower the third-row seats. You have to either climb into the boot and reach for the lever at the top of the seats, or reach through the back door and try and raise them that way. And again, they are heavy.

It is a deeply unintuitive system and leaves you exhausted and frustrated. Especially when you consider other seven seaters have a much more functional and lightweight third-row arrangement.

Once in the third row, it’s clear it is for humans with tiny legs only. It is not a space appropriate for six-foot tall men like me, even for short distances. You do get ample headroom, air vents, cupholders and storage boxes on either side that open up to show a kid-friendly spider web design with a friendly looking spider. Cute!

The seats fold flat into the boot floor and the loading lip is level with the floor so loading heavy or long items should be a breeze. You can adjust the air suspension from the boot to lower the height further which is always a handy feature.

It comes with a solid cargo blind but you need to remove it if you want to raise the third row. When putting it back in, it catches on the third-row seat belts, so it’s not the best design.

In terms of boot features, the Volvo comes with a household charging cable that is housed neatly under the boot floor in a stylish bag. Many PHEVs and EVs still don’t have a dedicated spot to house a cable so you have to take up boot space with a chunky cable bag. Good job, Volvo.

It has a powered tailgate, a few nooks and a pair of 5.0kg hooks. However, it doesn’t have a spare wheel of any description. Just a tyre repair kit. This is due to packaging restrictions, but it’s never an ideal solution.

In terms of space, the Volvo can swallow 640 litres of cargo with the second row up and 301L with all three rows in place. That latter figure isn’t bad compared to some seven-seaters.

During the media presentation at its launch, BMW described the 2 Series Gran Coupe as being almost as large as a 1990s E46 3 Series, and it is in all major dimensions except wheelbase.

Plus, being a front-drive-biased/transverse engine proposition instead of rear-wheel drive should make it roomier than the F74’s iconic ancestor.

The sense getting in is that this is certainly not too low or cramped as per a more-traditional coupe, with plenty of space for legs and shoulders, while even the optional sunroof fitted to our 218 left us with headroom to spare.

The redesigned dash is a visual and operational treat, with crisp, clear instruments, a logically presented and intuitive centre display screen offering fast and easy operation, excellent ventilation and ample storage. Full marks here.

Better still, attaining the perfect driving position is possible for most people, on brilliantly supportive front seats. This is the stuff BMW does right.

Improvement suggestions for the next update? Some people may complain about the somewhat less-than-premium feel of some of the lower-lying plastic trim; not everybody will love the swatches of colour stitching (we love it); why does the steering wheel have to be so wide-of-rim? Side and rear vision is restricted by fat pillars, rising shoulder lines and a shallow rear window; and there is quite a bit of road noise that enters the cabin at speed.

Still, even the back seat is sufficiently spacious for most users, with the sole exception of taller folk having to negotiate a sloping rear roofline. If you’re below 180cm, this should be fine. Most amenities minus overhead grab handles are also fitted.

Further back, the boot is surprisingly accommodating, with 430 litres of cargo capacity that’s enhanced by a 40:20:40 split-fold backrest, and the aperture should be big enough for bulkier loads, but the lack of a spare wheel will be bad news for many buyers. The supplied tyre-repair kit is just not good enough.

But, you know what is good enough? The engines BMW builds, that’s what.

This depends on how much you buy into this being a sporty Gran Coupe rather than a small sedan.

From $59,900 (all prices are before on-road costs), the German-made front-wheel-drive 218 base grade is slightly cheaper than the previous 218i equivalent, yet gains more kit. It also matches the A200 Sedan and costs a bit more than the (also recently facelifted) A3 Sedan, while offering similar performance and equipment to both.

Along with a host of advanced driver-assist safety (ADAS) systems like adaptive cruise control – to be covered in more detail later on – the base 2 Series Gran Coupe comes with the M Sport styling package inside and out as standard.

You’ll also find goodies like adaptive LED headlights with auto high beams, adaptive dampers, keyless entry/start, a curved all-in-one 10.25-inch instrument display/10.7-inch centre control display using BMW’s latest OS9 system offering cloud-based navigation, an M Sport steering wheel, heated sports front seats, a head-up display, surround-view camera, wireless smartphone charger, Apple CarPlay/Android Auto, BMW Connected Drive with auto emergency call and other services, artificial leather upholstery, a 40:20:40-split backrest, an electric tailgate and 19-inch M-Sport alloy wheels.

From $62,900, the 220 ditches the 218’s 115kW 1.5-litre three-cylinder turbo petrol engine for a 150kW 2.0-litre four-pot turbo, while the 233kW M235 xDrive from $86,600 adds a lot more muscle to that 2.0-litre engine, all-wheel drive, more ADAS tech, massaging front seats, a Harmon/Kardon audio upgrade, uprated brakes, a panoramic sunroof, a heated steering wheel, rear spoiler and higher-gloss trim.

Many of those items are available with a $6700 Enhancement pack on the lower grades.

These more-or-less line up with rival premium small sedans.

Note, though, that they are expensive compared to fine mainstream C-segment alternatives costing far less, like the Subaru WRX, Toyota Corolla hybrid and Mazda3. Or Hyundai’s criminally underrated Ioniq 6 EV. Labels, eh!

Still, for some folk, the 2 Series Gran Coupe’s swoopier silhouette might make it seem like more of a rival to the sleeker CLA than a mere A200/A3 competitor, and that Benz kicks off from about $15K more than the 218. If that’s you, the BMW might be construed as a bit of a bargain.

Since we’re talking about styling, let’s take a deeper dive into the F74’s newly minted looks.

Two powertrains are available in the new XC90, both with all-wheel drive.

The B5 Bright comes with a 2.0-litre four-cylinder turbo-petrol engine with 48-volt mild hybrid assistance offering 183kW of power and 350Nm of torque. It can dash from zero to 100km/h in 7.7 seconds.

The version I’m testing has a 233kW, 2.0-litre four-cylinder turbo-petrol engine with a plug-in hybrid system that uses a 107kW electric motor and an 18.8kWh, 400-volt battery.

The total system output for the T8 PHEV is 340kW and a meaty 709Nm. It uses an eight-speed automatic transmission. It can complete the 0-100km/h sprint in a brisk 5.3 seconds.

Three F74 powertrain choices are available for Australia in 2025. And none even remotely reflect what their respective badges imply on the boot.

The 218, for instance, is not powered by a 1.8-litre engine, but BMW’s long-lived B38 1.5-litre three-cylinder turbo petrol unit. Making 115kW of power at 6500rpm and 230Nm of torque between 1500rpm and 4600rpm, drive is channelled to the front wheels via a seven-speed dual-clutch transmission (7DCT).

With a kerb weight of 1420kg, the 218 has a power-to-weight ratio of 81kW per tonne, helping it achieve the 0-100km/h sprint time of 8.6 seconds, on the way to a 230km/h top speed.

Not enough? The 220 features the ubiquitous B48 2.0-litre (not a 2.2-litre) four-cylinder turbo petrol engine/7DCT combo, pumping out 150kW at 6500rpm and 300Nm from 1450-4500rpm. Tipping the scales at 1525kg for 98.4kW/tonne, its 0-100km/h time is 7.3s and top speed is 250km/h.

Want more? Stretching to the M235 xDrive sadly doesn’t mean a 3.5-litre in-line six, but a modified B48 2.0L/7DCT duo, delivering 233kW at 6500rpm and 400Nm from 2000-4500rpm to all four wheels. Result? Weighing just 50kg more than the 220, it boasts a heady 148kW/tonne, for a 0-100km/h of just 4.9s and a 250km/h v-max.

As with all of the UKL2/FAAR transverse-engine front-to-AWD platform models from non-electric Minis through to sub-X3/3 Series BMWs, you’ll find MacPherson-style struts up front and a multi-link independent rear end out back.

If you’re reading this outside of Australia, you may notice that none of the current F74 models offer mild-hybrid tech, in contrast to their European counterparts. And don’t go expecting any manual gearboxes either, unfortunately.

The mild-hybrid XC90 B5 Bright has an official fuel use figure of 8.1 litres per 100 kilometres, which is on the thirsty side, although it is a 2.5-tonne SUV.

Officially, the XC90 T8 Plug In Hybrid sips just 1.8L/100km on the combined (urban/extra-urban) cycle, but as with any PHEVs, unless you charge your car religiously and never drive far enough to deplete the battery, that figure is extremely hard to achieve.

I charged the car regularly using my home wall charger (two to three hours for a full charge) and the fuel gauge barely moved.

After a week of mixed driving my final fuel economy figure was 3.4 litres per 100km, which isn’t too bad.

The XC90 T8 has a 3.6kW onboard charger and a Type 2 plug so it’s only capable of AC charging. It is not compatible with a DC source so no fast charging on the go.

The official electric driving range according to Volvo is 77km, which feels a little old school compared to the many PHEVs landing on the market now that have an EV driving range in excess of 100km.

The offical figure also seems somewhat optimistic because the most I got on a full charge was 60km. Anecdotally, I have heard it can get up to 70km after a charge, it just didn't get there in my time with the XC90.

OK, so is the 2 Series Gran Coupe cheap to run?

BMW reckons the 218 and 220 will average 6.3 and 6.7 litres per 100km, which means combined average carbon dioxide emissions ratings of 143 and 152 grams/km respectively.

Filling the 49L fuel tank with 95 RON premium unleaded, that translates to around 775km in the 218, and 730km in the 220 between refills.

Predictably, the M235 xDrive uses more, at 7.7L/100km for a CO2 rating of 176g/km. That’s a distance of about 635km.

Over our launch run, which took us from Sydney’s Circular Quay to Wollongong, the 218’s trip meter was reading in the high 8s and about 10 for the M235.

For a tall, large and heavy SUV, the XC90 has an excellent driving position. You feel hunkered down in the driver’s seat; it’s almost sporty!

Those healthy power and torque figures translate well on the road. It is properly quick off the mark and picks up pace rapidly when already at speed. You do need to work out the trigger point for the accelerator because if you give it too much it feels a little like a slingshot.

The transition between the electric motor and the petrol engine is noticeable, but it’s still smooth. It’s not harsh or clunky like some hybrids and PHEVs. Similarly, the eight-speed transmission is so smooth it rarely makes its presence felt. It's a lovely match for this powertrain.

On that, the cabin is incredibly well insulated. It’s a hushed ride at any speed. Again, you’ll hear the engine kick in but it has a nice note so that noise is welcome.

The powertrain has several driving modes including 'Pure' (EV only), 'Power' (for added performance) and 'Hybrid'. Hybrid is the go-to and 'Auto' allows the system to determine when the petrol engine kicks in. This is the best everyday mode.

Volvo understands the XC90 is more than just family transport and has engineered it in such a way that it offers a surprising level of dynamism.

It’s flatter in corners and bends than you expect of a car of this size and weight. It has a balanced chassis, likely helped by the air suspension, with minimal body roll and little lateral movement inside. Impressive.

It has enough grip on looser surfaces, aided by the all-wheel drive set-up.

The ride quality is more composed and refined at higher speeds, regardless of the road conditions, managing potholes and the like quite well. Volvo has tweaked the suspension tune as part of the update for this very reason.

At lower urban speeds, it’s not quite as calm. You’ll feel speed bumps and potholes and it's a little jiggly on rough surfaces. The low profile (275/35 R22) tyres are partly to blame here.

With that said, it’s not enough to dampen the overall XC90 drive experience. It is a lovely car to drive, whether cruising on freeways, country road blasts or city commuting.

Its underpinnings might be 10 years old, but the XC90 feels as fresh to drive as many of its rivals.

Earlier, we mentioned that the 2 Series Gran Coupe is way more expensive than fine alternative sedans like the Mazda3 and Toyota Corolla.

And while that still stands, there is a remarkable solidity and refinement difference between those and the BMW that helps justify the premium. And nowhere is this more evident than from behind the wheel.

Sat on body-hugging seats and clutching that (too chunky) steering wheel, there is a sense of sporty occasion, backed up by quality trim and an aroma of expensiveness.

For a turbo three-cylinder car weighing 1.5 tonnes, the 218 does a lot with a little, offering spirited off-the-line acceleration and pleasingly lag-free throttle responses at lower speeds. You’d never call it fast, but it is a quick point-to-point urban mover. Only the unavoidable three-pot thrum lets you know you’re in the lowest mechanical spec. And, also, the delay at freeway speeds in building momentum when overtaking.

Which is why, for less than five per cent extra, the 220 with the 2.0-litre four-cylinder turbo would probably make a better buy. Sadly, that isn’t on sale yet in Australia, so we missed out on driving it during the Sydney launch. But in the scores of other BMWs and Minis we’ve tested this in, it’s a cracking little powertrain.

Whether the big leap (nearly $25K worth) to the M235 is worth it depends on how fast you drive and how much you value/need AWD. This is a terrifically muscular machine, since it provides rapid performance via a tidal wave of power, even with the lightest flex of your right foot. On-point and on-brand, this fun and fiery flagship possesses the grand-touring spirit that the rakish design and tech-heavy engineering promise.

To that end, in both the 218 and M235, the steering makes the driver feel connected to the car, resulting in precise and controlled handling. The driver-assist safety tech is beautifully calibrated and nuanced in its intervention, and the brakes are second-to-none.

What is also on-topic for a BMW is the firm suspension, despite the adaptive dampers fitted as standard equipment.

It isn’t stiff or overly uncomfortable, but bumps are certainly always felt, and they’re accompanied by fairly constant road-noise drone over some surfaces.

As such, you’re constantly reminded that dynamic athleticism is the priority here, rather than sumptuous comfort. We’ve experienced much worse from BMW, but a magic-carpet ride isn’t what’s in store for the 2 Series Gran Coupe owner.

So, what’s our verdict then? The 218 is a rorty little tryer that never fails to involve the driver, while the M235 ushers in an elevated level of acceleration, grunt and grip. We suspect that the 220 will be the Goldilocks-zone happy medium.

For (largely) better as well as for (occasionally) worse, these drive and feel like a BMW should.

The latest, F74 2 Series Gran Coupe scores neither an ANCAP nor EuroNCAP rating at this stage, but its F44 predecessor managed a five-star result back in 2019.

For the latest version, BMW is highlighting an elevated level of advanced driver-assist safety (ADAS), including lane-change/departure alerts, forward collision warning and automatic emergency braking tech that detects vulnerable road users like pedestrians and cyclists, rear cross-traffic warning, exit warning, adaptive cruise-control with full stop/go functionality, blind-spot monitor and traffic-sign speed-limit alerts.

No information on AEB operating parameters is available as yet for the F74, but the earlier series’ low-speed AEB worked from 8km/h to 85km/h and inter-urban AEB kicked in between 5-80km/h, while the lane-support systems functioned from 70-210km/h.

Tyre-pressure warning, 360-degree surround-view cameras and six airbags are also included, along with Parking Assistant Plus that brings sensors, automatic parking, a reverse assistant that automatically retraces the last 50 metres travelled and a drive recorder.

Note that the 218 misses out on the 220/M235 grades’ ADAS-related crossroads warning, evasion assistant tech, lane-keeping assist with active side-collision prevention and front as well as rear cross-traffic warning. These are available in the aforementioned Enhancement Pack, but at this lofty price point, they should be standard.

Finally, there are ISOFIX child-seat anchorages in the rear-seat outboard positions, along with a trio of child-seat tether latches.

The XC90 is covered by Volvo’s five-year, unlimited kilometre warranty, and the servicing schedule is every 12 months or 15,000km, whichever comes first. These are similar terms to other premium brands in Australia.

Buyers can opt for one of two capped-price servicing packs, costing $2380 for three years and $3870 for five years.

This pricing is a little more than the BMW X5 but quite a bit more affordable than the Mercedes-Benz GLE.

The Swedish brand used to have a reputation for over-priced servicing but it’s sharpened up its offer considerably in recent years.

Volvo has around 40 dealerships located across Australia and conducts its servicing in-house at the dealer.

Here, however, is where BMW can do a bit better.

While the five-year/unlimited-kilometre warranty is where most premium brands are, it falls short of several Asian alternatives. Roadside assistance is for just three years and there is no capped-price servicing.

Service scheduling is also condition-based, meaning the vehicle will alert the driver when a service is imminent. This may not suit everybody, and we always recommend at least every 12 months or 10,000km, just to be on the safe side.

BMW does offer pre-paid service packs that take in basic maintenance for the first five years at $2369 or $3782, including brake-pad replacement, which works out to be about $475 and nearly $760 annually respectively. There is also a cap on mileage during that time frame: 80,000km.