In-depth reviews

Volvo XC40 SUV - MPG, running costs & CO2

Alternative fuel versions are now in the range, but the diesel is respectable regardless

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4.0 out of 5

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MPG, running costs & CO2 Rating

4.0 out of 5

A plug-in hybrid version of the XC40 has arrived to satisfy those looking for radically reduced running costs, although it is expensive to buy in the first place. A pure-electric Recharge P8 model is also offered, which we've reviewed separately, with zero exhaust emissions and a 260-mile range. In the meantime, there’s a range of conventional petrol and diesel engines that provide reasonable economy on a par with most rivals.

Volvo XC40 MPG & CO2

The most economical engine and gearbox combination is the D3 manual, which can return up to 51.4mpg while emitting 143g/km of CO2. This is sure to appeal to company-car drivers thanks to its reasonable Benefit-in-Kind (BiK) band. It can’t quite match the most economical BMW X1 though, with figures of 55.4mpg and 137g/km.

You’ll need to stick with smaller alloy wheels to achieve the quoted figures because the largest-available wheels (21 inches) increase CO2 emissions to 154g/km and reduce the fuel economy very slightly to 47.9mpg. Ticking the box marked ‘automatic’ has a similar effect, dropping economy to 47.1mpg with 18-inch rims fitted. Four-wheel-drive versions of the XC40 D3 are thirstier still, returning 44.8mpg and emitting 157-165g/km of CO2.

The more powerful D4 has four-wheel drive and an automatic as standard and is barely less economical than the similarly equipped D3 – as long as you don’t choose 21-inch alloy wheels.

Where the petrol engines are concerned, the entry-level front-wheel-drive T2 and T3 manual options return 37.2-40.4mpg and emit 158-173g/km with a similar BiK band as the D3 diesel depending on the specification. This is slightly better than the 40.9mpg and 157g/km of the Audi Q3 with a 1.5-litre petrol turbo.

A drop in economy to 34-36.7mpg is actually quite modest given that the B4 AWD version has more power, four-wheel drive and an automatic gearbox. Emissions climb to 176-186g/km though, placing it in the highest BiK banding, which means it’s unlikely to appeal to business drivers. Choose the B5 and running costs are pricier still because it returns a claimed 34.4-36.7mpg. Still, this is better than the Jaguar E-Pace P250, which manages 29.8mpg and 185g/km of CO2.

The T5 Recharge plug-in hybrid officially returns between 117.7-134.5mpg, although you’ll struggle to achieve anywhere near this figure unless you regularly charge the 10.7kWh battery pack and make mostly short journeys around town, where the electric motor can take care of most driving. With Volvo’s offer to pay for charging in the first year, however, the plug-in hybrid could cost you almost nothing in fuel. It manages 28 miles of electric range and recharges in about three hours from a home charger using the optional 3.5kW Type 2 charger, which costs £50. Importantly, its CO2 emissions are 47-55g/km, making it an attractive option for company-car drivers and granting the car access to low emissions zones for free.

Thanks to its 75kWh battery, the all-electric XC40 Recharge P8 has a range of up to 260 miles, costs nothing to tax and will slash bills for company-car drivers. However, it's also very expensive to buy, costing over £50,000, so prospective buyers may be better off waiting for cheaper versions to arrive.

Insurance groups

The entry-level D3 model sits in group 23, while the T3 petrol is one group lower. The top diesel D4 will sit in group 29, while the powerful T5 is two to three groups higher.

Volvo has previously offered an 'all-in-one' package called Care By Volvo for buyers. This rolls a lease payment on the car, plus the cost of maintenance and insurance cover for three drivers, into a single monthly payment. It’s not currently available, but will be reintroduced later in 2020.


Volvo provides a fairly typical three-year/60,000-mile warranty that can be extended if you’re prepared to pay extra. While it matches the Volkswagen Tiguan, it looks a bit stingy next to manufacturers offering longer cover periods for free.


It’s possible to spread the cost of servicing by signing up to monthly payments instead of being hit in the pocket at the garage. The aforementioned Care By Volvo package rolls the cost of servicing, insurance and leasing your XC40 into a single monthly payment, although service plans are available separately if you’re not buying or leasing your car through Care by Volvo.

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