Volvo XC40 wins Best Small SUV under $80K

This segment, perhaps more than any other, represents the battleground for the aspirational Australian new car buyer. With medium SUVs the family favourites, and small SUVs under $50K the focus of budget-conscious buyers, it’s this segment, spread from $50K up to $80K that attracts those looking to make their first step into premium new SUV ownership.

Small in size, but big on features and delivering a sense of reward for the buyer, small SUVs have become the multi-tool of modern motoring. As comfortable around town in traffic as they are out in the country on the open road, there’s much more to a modern small SUV in this price point than meets the eye.

And, on that subject of more, buyers expect more in this segment every year. More for their money, more bang for their buck, more standard features, more connectivity, more performance, and more luxury. Nearly every manufacturer wants a piece of this segment, but sales success is far from assured.

Last year’s winner – the Volvo XC40 – once again beat a quality field to take the award, with a compelling blend of standard equipment and Volvo’s signature build quality and attention to detail.

Like most SUVs in this segment, the XC40 has grown in physical size, matching the growth in buyer expectations. And it’s not a one-time champion either. In fact, XC40 enters the 2024 DCOTY awards as a three-time defending champion, gunning for four in a row. This year though, the field is stacked with more quality than ever before.

This year, XC40 will go head-to-head with a diverse group that includes the excellent Volkswagen T-Roc, evergreen BMW X1 and Hyundai Kona EV. These combatants bring different strengths to the battlefield, both on paper and in how they deliver to the value equation, but the aim is the same.

That is, they must deliver an insulated, comfortable driving experience while tackling the urban jungle, carry up to four adults in relative comfort, and deal with the highway as easily as a city street in the event of a longer road trip. Factors like ease of manoeuvrability in the city and cabin design are key, along with fuel efficiency and driver engagement.

While aspiration is the undoubted key to this segment, this could be the first purchase for a young couple, a downsize option for an older couple, the primary driver for a family expecting its first child, or the default option for parents with two teenage kids in tow. That’s why this DCOTY award is one of the toughest to win.

It’s time to reveal the Drive Car of the Year 2024 Best Small SUV Under $80,000

Drive's pick: Volvo XC40 2.0 Ultimate B4 Dark from $62,990 MSRP

With a fourth win on the trot, the Volvo XC40’s legacy as a DCOTY giant killer is well and truly cemented. For the past four years, in the face of newer, improved, and varied competition, the Volvo XC40 has continued its dominant march to small SUV success.

As much as the contenders in this segment had the single-minded goal of dethroning a three-time reigning champion, there can be no understating the legacy the Volvo XC40 has left in this segment. Nor, the difficulty in winning such a heavily contested segment four times in a row. This is a truly remarkable achievement for Volvo’s small SUV, which has impressed from the minute it broke cover.

Volvo’s XC40 is value-packed, built to a high standard, matches all-round driveability with cabin practicality and comfort, is safe and remains at the head of the class in terms of technology that is easy to use. ANCAP awarded the XC40 range a full five-star rating in 2018 testing. The safety body scored it an impressive 97 per cent for adult occupant protection, 84 per cent for child occupants, 71 per cent for vulnerable road users, and 78 per cent for its safety assist systems.

Falling well beneath the $80K threshold, our pick of the range is as much XC40 as you can buy – Ultimate B4 (either Bright or Dark) – and there is no SUV in this segment that can match it.

Should you wish, you can even sneak into a fully electric XC40 beneath the $80K cap, so XC40 really does offer something for every small SUV buyer with this kind of budget to access. And, with the Australian love affair with the SUV showing no sign of petering out, this is a key segment in our market.

The finalists in this category can’t compete with XC40, not just regarding the asking price, but also in terms of the feeling of luxury and insulation inside the cabin.

Australian new car buyers tend toward the more expensive variants regardless of brand, and that’s one reason why Volvo’s sharp XC40 pricing is so attractive. Interestingly, and perhaps evidence that Volvo acknowledges how competitive this segment is, when a raft of price increases was announced in February 2023, petrol-powered XC40s featured the smallest increase – between $500 and $1000. At that time, the B5 engine variant was removed from the range.

To say the XC40 is well-equipped is an understatement, with the price-leading, XC40 Plus B4 model featuring a lengthy list of standard equipment. Highlights include LED headlights, 18-inch alloy wheels, a suite of active and passive safety assistance, 12-inch driver’s display, tyre pressure monitoring, adaptive power steering, 9.0-inch infotainment screen, adaptive cruise control, and front, rear and side parking assistance.

Even the most affordable XC40 makes an immediate impression when you take a seat inside the cabin, let alone the range-topper we’ve selected as our pick of the bunch. The highlight of any Volvo test drive is always the ambience and quality of the cabin and that remains the case with the XC40. The choice of materials, fit, finish and attention to detail are excellent.

Volvo’s warranty covers the XC40 for five years/unlimited kilometres and features handy 12-month/15,000km service intervals. Cost of servicing is something Volvo has sharpened up in the past few years, too, with three years XC40 ownership costing $1750 and five years, $3000.

While there’s no doubting the credentials of the price leader, the DCOTY judges have nominated the range-topper as the pick and its list of standard features reflects not just a comfortable fit beneath the $80K threshold, but compelling value in a competitive field. In fact, you could add a couple of Volvo’s optional packs and still drive away in a top of the range XC40 for less than $80K.

While the punchy XC40 B5 is no more, the 48-volt mild hybrid system and 2.0-litre, turbocharged four-cylinder powering the B4 is still an engaging package. 145kW between 4800rpm-5400rpm and 300Nm between 1500rpm-4200rpm equate to a 0-100km/h run in 8.5 seconds, while the excellent eight-speed auto and all-wheel drive ensure driving enjoyment and all-weather grip.

The combination of luxury and effortless driving enjoyment is why the range-topper is our pick, but it’s also efficient, using a claimed 7.1L/100km on the combined cycle. Keep in mind though that it does require premium fuel – that means 95 RON as a minimum.

You can of course consider a fully electric XC40 Recharge within the XC40 range, and the most affordable variant (starting from $76,990 before on-road costs) falls below our $80K threshold, too, but at the moment, the DCOTY judges agree the petrol powered XC40 provides sharper value for money.

Thanks to the rationalised range, it’s tough to pick a weakness in the XC40’s armoury, the requirement for premium fuel a minor gripe noted by the judges. But, with Volvo on its way to becoming an electric-only car company in this country in 2026, the judges did note that now is the time to secure a petrol XC40 if it fits your needs. 

XC40’s cabin is an excellent one – regardless of specification grade – and it’s always felt half a size larger than the segment in terms of room and comfort. There’s space for four adults (and their luggage) on board, while three young passengers will fit comfortably across the second row for family buyers.

Boot space expands from 460L with the second row in use, out to a whopping 1336L when you fold that row down, ensuring XC40 is as useful as it is practical for the one-car family. Braked towing capacity is rated at 2100kg, too, which is handy for most small to medium trailers. As is par for the medium SUV course, there’s a space-saver spare hidden beneath the rear floor.

When you factor in the premium aspiration of the intended buyer, as well as the expectation of safety, quality and practicality, the Volvo XC40 is the undisputed winner of this tightly contested award. On paper, plenty have come close, but none have dethroned the now four-time winner.

That’s why the Volvo XC40 is the Drive Car of the Year 2024 Best Small SUV Under $80,000.

Find out everything you need to know about all the Drive Car of the Year 2024 category winners at our DCOTY content hub.