The B5 2L turbo four provides enthusiastic performance and flexibility beyond what its posted horsepower suggests. The B5 engine is smoother and quieter than the occasionally guttural T5 it replaces. The B5 engine is well matched to an eight-speed automatic transmission whose only fault is a gear selector that is difficult to use. While feather light and devoid of feel at low speeds, the steering of the XC40 firms up as speeds rise, is accurate and holds its line well at highway speeds. Ride and handling are both very competent and nicely sorted for the intended market. The XC40 B5 is a very engaging vehicle to drive.

Though the instrumentation and main info screen on the XC40 are attractive and common to most Volvos, the touch screen that controls many functions is not initially user friendly. However, once basic settings are made, several of the screens can be virtually dismissed, with normally-accessed functions become less opaque over time. Seating up front is very comfortable and room is ample. Built on a different platform than other Volvos, the XC40, with very vertical sides and large windows, feels much airier than its shallow-windowed showroom mates. The rear seat is quite comfortable and has sufficient legroom for most adults. There is plenty of space for feet under the front seats but a hard ridge on the base of the front seat rubs uncomfortably against the shins of rear seat riders. Cargo space is ample. Cabin materials on high-end models, with elegant two-toning, supple leather, driftwood accents and scratchy fabric door inserts, are very attractive.

With no On/Off switch, the driver is not in control of whether the car is on or off, and there is no way to turn the car fully off when you leave it, which is the way Tesla does things but will be unacceptable to some intenders. Driven briefly, the XC40 Recharge BEV accelerates with extreme vigour, in virtual silence. Despite standard all-wheel drive, there is significant torque-steer while accelerating hard. Steering is nicely weighted, precise and holds its line well on the highway. Ride and handling are very well resolved. Volvo notes that the Recharge (the name to be used for all of Volvos BEVs) was purpose-built to be an electric car, The battery pack is located low in the car, with cabin and cargo space unaltered from the conventional XC40, except for the small trunk located under the hood of the car. The front seats are very comfortable and the driving position is excellent. The rear seat has just enough room but the bases of the front seats contact the shins of rear seat riders in an unpleasant way. The driver faces a digital display that is configurable, but its controls hamper interaction with it. Though the large centre screen looks the same as the unit that is installed in all Volvos, the logic system behind it used Android technology, leaving the interface Volvo owners are used to, in the past. Too little time was spent with the car to get down to its fundamentals, but even owners will take some time to come to terms with it. The Google-based navigation system works quite well and a vast array of radio stations are available. The Harmon-Kardon audio systems delivers pleasing sounds. For its full electric cars, Volvo stresses sustainability of all the components of the Recharge, and knows where all the elements of the battery pack are sourced from.

The XC40 is Volvo’s fourth vehicle since its renaissance under Geely ownership. It is built on a new Compact Modular Architecture. B4 and B5 engines are available.

Though visually unrelated in design terms to other Volvos, the XC40 has an interesting, and alert look. Volvo has re-purposed its attractive TFT (transistor film technology) dash gauges, large info screen and minor controls from the current lineup inside the new crossover. An all-electric Recharge model, went on sale during the 2021 model year and 2022 saw the introduction is a swoopy version of the Recharge, called the C40.

The battery pack of the XC40 Recharge produces 408 horsepower and 359 kilometres in range under ideal conditions. The range is unimpressive when compared with the 531 range of the Tesla Y long-range dual motor model. Volvo claim that their car can take on an 80 percent charge in 45 minutes using a DC fast charge portal. The massive horsepower available is really beyond what is practical or necessary and it might have been a better strategy to devote more of the battery pack to range rather than superfluous acceleration.

With the 194 horsepower (plus 13 from the Integrated Starter Generator), B4 light-hybrid powertrain, the base Core trim, with a full active safety suite, rear parking sensors, power tailgate, auto-dim mirrors and heated front seats, is well equipped. The B5 powertrain costs  $3700 extra on the base Core trim. Moving up to the Plus trim adds fog lights, front parking sensors, power passenger seat, half-suede seats, foot gesture tailgate, wireless cellphone charging and a variety of other equipment, and is good value. The Ultimate range-topper includes leather seating, adaptive cruise control, a 360 degree camera system, Pilot Assist, which offers limited self driving, heated rear seats, a Harmon-Kardon audio system, genuine driftwood trim, an Orrefors crystal shift knob and a variety of other equipment, at a fair price. The Bright and Dark trim themes are priced the same. The full-electric XC40 Recharge and C40 can only be bought online and cannot be purchased through Volvo dealers. The Core is nicely equipped. The Plus adds a heat pump system, a 360 degree camera, half suede cabin trim, a power passenger seat, a panoramic sunroof and a variety of minor features, but it is significantly overpriced. The Ultimate upgrade includes leather seating, a heated steering wheel, adaptive cruise control, heated rear seats and a Harmon-Kardon audio system and is priced to reflect the value of the additional features. The XC40 Recharge is priced $14,200 (Core), $18,300 (Ultimate) and $20,545 (Plus) higher than the equivalent B5 model. The Recharge Plus trim upgrade on the Recharge is vastly overpriced but that for the Ultimate is priced to reflect the value of the additional content. The Core and Plus versions of the C40, a four-door coupe in the German manner, is priced the same as the XC40, but the Ultimate tariff is $700 higher than the XC40 Recharge. The XC40 and C40 Recharge models can generate a federal government rebate of $5000, with $7000 offered by Quebec.

The Plus and Ultimate trim upgrades are overpriced. Rebates of $5000 from the federal government and $7000 from Quebec, are available.

New car, not rated. Predicted reliability is below average. Electrical glitches are to be expected. The four-cylinder turbo is unproven. An extended warranty from Volvo is recommended if you plan to keep the vehicle longer than the warranty period. Short powertrain warranty.