2023 Volvo XC40 vs 2023 Volkswagen ID.4

In Volvo speak, “40” denotes an entry-level model. While the Swedish automaker no longer rosters the S40 sedan or V40 wagon in North America, the XC40 subcompact crossover remains to compete with the likes of the Audi Q3, the BMW X1, the Lexus UX, and the Mercedes-Benz GLA for aspiring luxury-car owners’ dollars.

The XC40 was unveiled in 2017, arriving as a 2019 model, and it hasn’t undergone a redesign since. An all-electric Volvo XC40 Recharge variant joined the lineup as a 2021 model. Volvo’s other current EV, the C40 Recharge, is also broadly similar to the XC40 models, but with a coupe-like body style.

For 2023, Volvo gave the XC40 several notable updates, including new mild-hybrid powertrains, revised styling, and the Android-based infotainment system previously seen on the XC40 Recharge and other Volvo models.

The mild-hybrid lineup includes base Core, mid-level Plus, and top Ultimate trim levels, with standard B5 all-wheel drive (AWD) drivetrains (the B4 front-wheel drive, or FWD, version offered in the US is not available in Canada). This Volvo XC40 review is based on the Ultimate trim in B5 AWD spec.

The Volkswagen ID.4 electric car is still relatively new to the marketplace (it debuted for the 2021 model year) but VW is already making some important updates to keep it competitive and fulfil goals set when this compact electric SUV first launched.

The 2023 Volkswagen ID.4 adds a new base model and a smaller 62-kilowatt-hour battery pack alongside the carryover 82-kWh to increase affordability. VW will also begin sourcing cars for its North American dealerships from the same Chattanooga, Tennessee, factory that builds the gasoline-powered Atlas and Atlas Cross Sport. The automaker has been discussing this since the ID.4 was unveiled, but at first cars for our market came from Zwickau, Germany.

The 2023 ID.4 retains single-motor rear-wheel drive (RWD) and dual-motor all-wheel drive (AWD) powertrain options, but gets revised exterior and interior styling, some software changes, and a few more standard tech features and driver aids.

The new-for-2023 base model is dubbed simply ID.4, slotting below the ID.4 Pro and ID.4 Pro AWD. We recently spent a day on a test drive with the U.S. equivalent of the ID.4 Pro AWD model, along with a shorter drive in a base ID.4 model.