Volvo XC90 vs Lexus IS
What's the difference?

Volvo XC90

$97,990 - $130,990

2026 price

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Lexus IS

$39,990 - $62,990

2021 price

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Land Rover Discovery Sport

Mercedes-Benz A-Class

Mercedes-Benz C-Class

Mercedes-Benz E-Class

Mercedes-Benz E300

Mercedes-Benz E53

Mercedes-Benz EQ-Class

Mercedes-Benz Eqb250

Mercedes-Benz G-Class

Mercedes-Benz G63

Mercedes-Benz GLA-Class

Mercedes-Benz GLA35

Mercedes-Benz GLB-Class

Mercedes-Benz GLC-Class

Mercedes-Benz GLC300

Mercedes-Benz GLE-Class

Mercedes-Benz GLS

Mercedes-Benz GLS-Class

Mini Countryman

Mitsubishi ASX

Mitsubishi Eclipse Cross

Mitsubishi Outlander

Mitsubishi Pajero

Mitsubishi Pajero Sport

Summary

2026 Volvo XC90

2021 Lexus IS

By Tim Nicholson

By Tom White

Safety Rating

Engine Type

Turbo 4, 2.0L

Inline 4, 2.5L

Fuel Type

—

Premium Unleaded/Electric

Fuel Efficiency

1.8L/100km (combined)

4.9L/100km (combined)

Seating

Likes

New multimedia system
Interior design and materials
Brisk and engaging performance

Sleek and efficient hybrid drive
Graceful ride
Spec improvements

Dislikes

Old school EV driving range
Clunky third row set-up
Unsettled low-speed ride

Slow
Busy interior design
Fiddly and over-complicated software

2026 Volvo XC90 Summary

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…

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2021 Lexus IS Summary

One question frequently discussed in the skunkworks of the CarsGuide office is: What exactly does Lexus stand for?

When the brand debuted its original export-market IS sedan in 1999 the messaging was more or less clear: Toyota’s premium sub-brand was here to be a Japanese BMW.

The brand even employed Nobuaki Katayama – chief engineer on the iconic Corolla AE86 program – to again take the reins of its small rear-wheel drive sedan program.

As the years went on though, Lexus changed. Fundamentally geared toward the US market, the second-generation (wild IS F aside) became a bit more sedate and softer around the edges, while the third generation strayed even further from the sedan’s performance-inspired roots, leaning into a plush interior, hybrid drive, and even CVT transmissions.

This brings us to today’s Lexus IS. Essentially a heavy facelift of the third generation (which arrived back in 2013), the brand has “reimagined” its core sedan with a tweaked design and updated technology for 2021.

Is it enough to keep it relevant against its ever-present European rivals and the newly arrived threat from Hyundai’s Genesis G70? I took a signature IS300h hybrid for a week to find out.

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Deep dive comparison

2026 Volvo XC90 2021 Lexus IS

Verdict

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.

Verdict

Smooth, cosy, quiet, the IS looks and feels better than ever, but without a doubt this hybrid version is a car best suited to cruising the dense metropolis of Chiba at midnight more than it is carving up a bunch of S-bends in the Australian countryside on the weekend.

While that might still limit its appeal for fans of German sports luxury sedans and place it further from the original IS’s ambitions, it does offer an intriguing efficiency and luxury focused alternative, without the compromises brought by rivals with more sporting intent. In a way then, the IS 300h perhaps inadvertently best embodies what Lexus is as a brand.

Volvo XC90 vs Lexus IS What's the difference?

Summary

Deep dive comparison

Verdict

Verdict

Volvo XC90 vs Lexus IS
What's the difference?