2021 Volvo XC40 vs 2021 Toyota RAV4

Introduced for the 2019 model year, the Volvo XC40 enters 2021 with one major change—the addition of an all-electric powertrain option. The 2021 Volvo XC40 Recharge is the Scandinavian automaker’s first mass-market pure electric vehicle, in fact.

The Recharge will be sold alongside gasoline versions of the XC40, which carry over largely unchanged, and compete against small luxury crossovers like the Audi Q3, BMW X1, Mercedes-Benz GLA-Class, and Lexus UX. With its electric powertrain, the Recharge is a de facto Tesla Model Y competitor. It’s also priced similar to high-end versions of the Ford Mustang Mach-E, although the two electric crossovers have somewhat different philosophies.

In addition to that zero-emission powertrain, the Recharge gets an Android-based operating system, over-the-air (OTA) software update capability for all vehicle systems, and some updates to driver-assist tech. These changes don’t apply to gasoline 2021 XC40 models, but Volvo does plan to add the Android operating system to more vehicles in the future.

Since the Recharge is the main new thing for the 2021 XC40, that’s what we focused on for this review. While the gasoline XC40 is available in three trim levels—Momentum, R-Design, and Inscription—with standard all-wheel drive (AWD) in Canada, the Recharge is only offered in a single trim level.

Since its launch in 1997, the Toyota RAV4 has ridden a wave of crossover SUV popularity to become one of Toyota’s bestselling models. Introduced for the 2019 model year, the current-generation RAV4 tries to offer the rugged style of a traditional SUV, but underneath it’s still a car-based crossover pitched against the likes of the Ford Escape, Honda CR-V, Hyundai Tucson, Kia Sportage, Nissan Rogue, Subaru Forester, and Volkswagen Tiguan.

Because it’s only in its third model year, this fifth-generation RAV4 doesn’t get many updates for 2021. The biggest news is the addition of the RAV4 Prime plug-in hybrid to the lineup, but that model actually went on sale last year.

Toyota offers compact SUV buyers more choices than most competitors. The Toyota RAV4 LE, XLE, and Limited trim levels are available with hybrid and non-hybrid powertrains. Toyota also offers the gasoline-only Premium package for the XLE grade and the RAV4 Trail grade with available TRD Off-Road package, plus the RAV4 Hybrid XSE. The RAV4 Prime is also available in two trim levels—SE and XSE.

This review will focus on the gasoline RAV4. Our test car was a RAV4 Trail with the TRD Off-Road package, which joined the lineup for the 2020 model year and is the first RAV4 model tuned by Toyota Racing Development, the automaker’s North American performance division.