The facelifted Volvo XC40 is due in Australia imminently, with a new look, mild-hybrid engines, bonus features, and more choice for EV buyers – but higher prices.


  • 2023 Volvo XC40 pricing and specifications
  • Facelifted small SUV adds new front fascia, wheels and colours
  • Mild-hybrid petrol engines added alongside single-motor electric
  • Priced from $52,990 before on-road costs

The 2023 Volvo XC40 range will launch in Australia next month with a choice of mild-hybrid or electric powertrains only – but prices have risen by up to $4500.

Due in Volvo showrooms in August, the 2023 XC40 range brings a new look inspired by the related C40 coupe SUV – with sharper headlights and lower intakes – plus revised trim and wheel options, and a new Android Automotive infotainment system.

The updated XC40 also completes Volvo Australia’s transition to a hybrid and electric-only range, ditching its T4 and T5 petrol engines for new B4 and B5 units with 48-volt mild-hybrid systems, promising similar performance but improved efficiency.



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Above: European model similar to Australia’s XC40 Ultimate B5 Dark.

Three petrol and two electric models will be offered, across new Plus and Ultimate specification levels – waving goodbye to the old Momentum, Inscription and R-Design nomenclature, with each model now differentiated only by wheels and trim colour, rather than front and rear bumpers.

However, prices have risen significantly; all three petrol grades cost $4500 more than the models they replace, pushing the new Plus B4 ‘base model’ to $52,990 plus on-road costs – $8000 more than a T4 Momentum cost in 2019.

The strong-selling XC40 Recharge Pure Electric range has gained a new single-motor Plus variant, from $72,990 plus on-road costs, with less power and a smaller battery pack.



The existing dual-motor car remains, now priced from $79,490, with Ultimate badging – $2500 more than the MY22 dual-motor XC40 but, oddly, $500 less than the price announced for the MY23 version in December 2021. The plug-in hybrid has been axed.

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Above: European model roughly similar to Australia’s XC40 Ultimate B5 Dark.

However, the price rises are met by increases in standard equipment, with the entry-level model gaining wireless phone charging, an electric tailgate, electric passenger seat and more – while higher grades score a standard 360-degree camera, and an air purifier.

In addition to a new front end, all models gain USB-C ports (replacing USB-A), new wheel designs, and support for a Volvo Cars app.



Already fitted to the 2022 electric model, but new for the petrol XC40 for 2023, is a new infotainment system powered by Google’s Android Automotive operating system – not to be confused with the Android Auto smartphone ‘mirroring’ app already offered on Volvos.

This system incorporates traditional Android Auto, Google Maps navigation, over-the-air updates, Google Assistant and, following a recent software update, Apple CarPlay tech.

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Above: European model similar to Australia’s XC40 Recharge Pure Electric dual motor.

Each model in the old petrol range has a mild-hybrid replacement: T4 Momentum to Plus B4, T4 Inscription to Ultimate B4 Bright, and T5 R-Design to Ultimate B5 Dark.



Powering the new mild-hybrid petrol models is a 2.0-litre turbocharged four-cylinder petrol engine developing 145kW/300Nm in the B4, or 183kW/350Nm in the B5 – up 5kW (B4) and down 2kW (B5) respectively compared to the old T4 and T5.

It’s coupled with a 48-volt mild-hybrid system, capable of a small 10kW/40Nm boost under hard acceleration, or switching the petrol engine off under low loads – such as cruising at a constant speed on a flat road, or when slowing down for traffic lights – to save fuel.

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Above: European mild-hybrid model.

A eight-speed automatic gearbox is standard, driving the front wheels in the Plus B4 for a 8.4-second 0-100km/h time, or all four wheels in the Ultimate B4 and B5 models for 8.5- and 6.4-second 0-100km/h sprints. All acceleration times are unchanged from equivalent T4 and T5 models.



Volvo claims fuel economy improvements of seven to 12 per cent in combined (city/highway) driving, to 6.9 litres per 100km for the Plus B4 (vs the 7.9L/100km Momentum), 7.1L/100km for the Ultimate B4 (vs the 8.0L/100km Inscription), and 7.2L/100km for the B5 (vs the 7.7L/100km R-Design).

Meanwhile, the Pure Electric range opens with the the single-motor model, with a 170kW/330Nm front-mounted electric motor and 67kWh (usable, or 69kWh total) battery for a 7.4-second 0-100km/h time, and a 180km/h limited top speed.

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The dual-motor Ultimate flagship offers dual 150kW electric motors, all-wheel drive and a 75kWh (usable, or 78kWh total) battery, to develop 300kW and 660Nm combined, and dash from zero to 100km/h in 4.9 seconds

Volvo Australia has previously quote an “expected” WLTP range claim of 380km for the single-motor model – though Volvo claims 423km in Europe – while the dual-motor variant should be capable of a claimed 418km. Both models offer 150kW DC fast charging.

Standard features – including what’s new for Model Year 2023 – are included in the lists below.

The 2023 Volvo XC40 range is available to order now, with close to 2000 orders already for the Recharge Pure Electric range, as of a month ago. First deliveries are due to commence in August (next month).



2023 Volvo XC40 Australian pricing

  • XC40 Plus B4 FWD – $52,990 (up $4500 vs T4 Momentum)
  • XC40 Ultimate B4 Bright AWD – $59,990 (up $4500 vs T4 Momentum)
  • XC40 Ultimate B5 Dark AWD – $63,990 (up $4500 vs T4 Momentum)
  • XC40 Recharge Pure Electric Plus single-motor – $72,990 (new)
  • XC40 Recharge Pure Electric Ultimate dual-motor – $79,490 (up $2500; down $500 vs December pricing)

Note: All prices above exclude on-road costs.

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Above: European-market model.

2023 Volvo XC40 Plus B4 standard features:

  • B4 engine with front-wheel drive (new)
  • Wireless smartphone charging (new, previously $300 extra)
  • Power-adjustable passenger seat (new)
  • Power-foldable rear headrests (new)
  • Power tailgate (new)
  • USB-C ports (new, replacing USB-A)
  • Mechanical front-seat cushion extensions (new, previously $180 extra)
  • Soft boot load net (new)
  • 18-inch alloy wheels (new design)
  • ‘Touring’ chassis tune (new)
  • LED headlights
  • 9.0-inch Android Automotive (new) infotainment touchscreen with Apple CarPlay, Android Auto, navigation and digital radio
  • 12-inch digital instrument cluster
  • Eight-speaker sound system
  • Dual-zone climate control
  • Keyless entry and start
  • Power-adjustable driver’s seat with memory, four-way lumbar
  • Auto-dimming exterior and interior mirrors
  • Textile or leather-accented upholstery
  • Artificial leather steering wheel
  • Front and rear parking sensors
  • Autonomous emergency braking (forward and reverse)
  • Adaptive cruise control
  • Lane-keep assist
  • Blind-spot monitoring
  • Rear cross-traffic alert
  • Hill descent control
  • Rain-sensing wipers
  • Traffic sign recognition

2023 Volvo XC40 Ultimate B4 Bright adds (over Plus B4):

  • 19-inch five-spoke alloy wheels (new design)
  • 360-degree camera (new)
  • Air purifier (new)
  • All-wheel drive
  • Leather-accented upholstery
  • Crystal gear selector

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Above: European-market model.

2023 Volvo XC40 Ultimate B5 Dark adds (over Ultimate B4 Bright):

  • B5 engine with all-wheel drive (new)
  • 20-inch black alloy wheels (new design)
  • Black exterior trim
  • Suede-accented seat upholstery

The XC40 Recharge Pure Electric range sits to the side of the mild hybrids – rather than above it – and is available in single-motor Plus and dual-motor Ultimate forms.

2023 Volvo XC40 Recharge Pure Electric Plus adds (over Plus B4):

  • 170kW electric powertrain
  • 19-inch five-spoke wheels
  • Heated front and rear seats
  • Heated steering wheel
  • Rear privacy glass
  • Panoramic sunroof
  • Black mirror caps
  • Unique floor mats

2023 Volvo XC40 Recharge Pure Electric Ultimate (over Electric Plus):

  • 300kW dual-motor powertrain
  • Pixel (matrix) LED headlights
  • 20-inch five-spoke alloy wheels (new design)
  • 14-speaker Harman Kardon sound system
  • 360-degree camera
  • ‘Sustainable’ seat upholstery

Alex Misoyannis

Alex Misoyannis has been writing about cars since 2017, when he started his own website, Redline. He contributed for Drive in 2018, before joining CarAdvice in 2019, becoming a regular contributing journalist within the news team in 2020. Cars have played a central role throughout Alex’s life, from flicking through car magazines as a young age, to growing up around performance vehicles in a car-loving family.

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