► PHEV version of Volvo’s smallest SUV
► XC40 gets 1.5-litre petrol engine and electric motor
► Official fuel economy figure of up to 134.5mpg
The Volvo XC40 was quite a forward‑thinking car when it was designed, destined to offer both plug‑in hybrid and full‑electric variants from the outset. Volvo ensured neither electrified powertrain compromised the SUV’s design or practicality – something not all rivals managed.
Should you buy a Volvo XC40 PHEV? Only if you can regularly exploit its modest EV range and value comfort and style over outright practicality.
Here’s how we test cars, and why you should trust us.
At a glance
Pros: elegant design, clever packaging, generous standard equipment
Cons: limited electric range, awkward regen braking feel, high purchase price
What’s new?
Originally launched in 2019, the XC40 PHEV remained in Volvo’s line‑up through the 2022 revamp, which reorganised trims into Core, Plus and Ultimate. By mid‑2023, however, plug‑in hybrid versions were quietly discontinued in the UK and Europe, leaving only mild‑hybrid petrol XC40s and the fully electric XC40 Recharge model (now rebranded the Volvo EX40) on sale.
What are the specs?
The XC40 PHEV marries a 1.5‑litre three‑cylinder petrol engine with an 80 bhp electric motor. The T4 delivers 208bhp; the T5 peaks at 258bhp. Both drive the front wheels via a seven‑speed automatic gearbox integrating the electric motor.
Volvo claimed up to 28 miles of electric‑only range but real‑world testing suggested closer to 20. Changing from regenerative to friction braking can feel abrupt.
Core trim offered 18‑inch alloys, LED headlights, a 12.3‑inch digital cluster, nine‑inch infotainment display and wireless charging; Ultimate added 19‑inch alloys, heated front and rear seats, a panoramic roof and Harman Kardon stereo – all from £41k, rising beyond £51k for a T5 in top trim.
How does it drive?
Predictable and safe. The XC40 was the first car to be built on Volvo’s CMA underpinnings, which features MacPherson struts up front and a multi-link setup at the rear. Such hardware means it can hold its own in the corners, but the dead steering feel coupled with the sheer amount of driver assistance technology Volvo has crammed into the platform puts a damper on driving fun.
The traction control system has a heavy hand and is all too keen to kill the power if it senses the slightest bit of slip from the front wheels, which is a little irritating when overtaking. The lane-keeping assist system is also very eager to keep you in line, which can make driving down narrow country roads a chore. You spend a lot of time fighting the safety system.
It is comfortable, though. Volvo designed the XC40’s suspension to be supple rather than sporty, which means it breezes over rutted tarmac with greater ease than, say, a MINI Countryman or an Audi Q2. We’re particularly impressed by how settled the plug-in hybrid model is with its larger 19-inch wheels – alloys that size often ruin ride quality.
The comfy suspension and non-communicative steering mean the SUV performs its best at a cruise, operating within the bounds of its safety systems. Don’t mistake this remark for criticism – it’s great to finally find a car in this class that isn’t trying to put on a false air of sportiness. The Volvo is unashamedly cosseting, and we respect it for that.
There are a couple of issues, though. The regenerative braking system isn’t particularly smooth. It works fine in isolation, but there’s a definite notch in the pedal travel during the changeover from regen braking to friction braking. It’s jerky and makes it difficult to drive the car smoothly.
Volvo says also that both versions of the XC40 PHEV can drive for up to 28 miles on battery power alone, but we found that figure to be more like 20 miles in the real world. At least when the battery does run out, the changeover from electric to hybrid mode is quite smooth. It doesn’t kick you in the back like the less sophisticated system fitted to the MG HS.
You can also make the most of the available charge by putting a destination into the sat-nav system. Then, the battery will meter out its available electricity gradually throughout the journey rather than using it all in one big hit, improving overall efficiency. You can also choose to keep some charge in reserve if the final leg of your trip is in a busy city.
What about the interior?
The XC40 has one of the most spacious interiors in its class, loaded with deep storage cubbies and door bins large enough to swallow laptops, phones and large water bottles whole. There’s also loads of headroom everywhere and lashings of leg room for those in the rear, even with the front seats pushed all the way back.
The PHEV’s boot is unchanged over the standard petrol-powered XC40’s. There are 452 litres of space available with the rear seats in place and 1,328 litres on offer if you fold the bench flat. These figures are average for the class, though – the Mercedes GLA’s boot can hold 495 litres, while the Range Rover Evoque’s can carry 591 litres.
Some drivers will lament the lack of physical controls on the dashboard. Everything – the climate controls, driver assistance technology, sat-nav, media functions and even the heated seats – is routed through the car’s 9.0-inch portrait infotainment system, which takes some getting used to.
There are an endless number of submenus to scroll though, so we suggest you set everything up before you start your journey, as it can be quite distracting on the road. However, safety-conscious Volvo has thought of that and designed a voice control system that allows to alter all these settings without letting go of the wheel.
Before you buy
Trim choices for the PHEV were Core, Plus and Ultimate, originally priced from roughly £41,000 to more than £51,000. On the used market today, 2020-2022 XC40 PHEV models are typically listed between £15,000 and £26,000, depending on year, mileage and trim. That represents roughly 40-60% depreciation from new, largely due to the model’s discontinuation.
While residuals remain respectable, buyers often opted for newer XC60/XC90 PHEVs, which received ongoing updates and typically deliver longer EV range and refined dynamics. Competitors such as the BMW X3 PHEV, Ford Kuga PHEV, and Kia Niro PHEV are priced similarly on the used market but often deliver stronger real‑world efficiency and smoother execution.
The Renault Rafale PHEV and Cupra Formentor PHEV – fresh arrivals in 2024–25 – also present tempting alternatives. Volvo’s mild‑hybrid XC40 remains in the line‑up, and the EX40 fully electric SUV takes the place of the plug‑in hybrid variant for buyers prioritising electric driving and lower running costs.
Verdict
As a used car, the Volvo XC40 PHEV makes an appealing case for buyers after a premium compact SUV that majors on comfort, refinement and safety. Its clean Scandinavian design, well-equipped cabin and smooth hybrid powertrain mean it still feels upmarket, even a few years down the line.
However, its limitations remain. The electric-only range is modest compared with newer rivals, and the regenerative braking can feel awkward at low speeds. It also lacks the all-wheel drive or longer range of some rivals, so it’s best suited to buyers who can regularly plug in and keep trips short.
Discontinued in mid-2023, the PHEV sits as a stepping stone in Volvo’s transition to full electrification. As a used buy, it undercuts many newer plug-in rivals on price, and offers all the safety and interior quality you’d expect from the brand – but unless your routine fits its capabilities, the mild-hybrid XC40 or EX40 EV may be better bets for longer-term ownership.