27 MPG combined won’t set any records, but in the 2023 Volvo XC40 B4, it represents a reasonable balance of efficiency and performance, offering a premium experience that Volvo owners expect. This isn’t strictly an economy car, it’s a stylish, well-equipped compact SUV designed for urban adventures and weekend getaways. Buyers prioritize safety, design, and a touch of Scandinavian luxury, along with decent fuel consumption.

City and highway performance

The EPA estimates the 2023 Volvo XC40 B4 will achieve 24 MPG in the city and 32 MPG on the highway; this difference reflects the characteristics of the vehicle and its powertrain. The 2.0L four-cylinder engine benefits from turbocharging and a mild hybrid system, providing sufficient power for confident acceleration around town. Stop-and-go driving, however, takes a toll.

On the open road, the eight-speed automatic transmission allows the engine to settle into a more efficient cruising speed, resulting in a higher highway figure. The XC40 is comfortable on the interstate, offering a stable and comfortable ride, which complements its fuel efficiency at higher speeds.

Annual fuel cost

The EPA calculates that the annual fuel cost for the 2023 Volvo XC40 B4 will be approximately $2,150. This is based on driving 15,000 miles per year and using the EPA’s estimate of the national average fuel costs for regular unleaded gasoline. Actual fuel costs will vary depending on your driving habits, the type of driving you do (city versus highway), and the price of gasoline in your area. This provides a standardized baseline for comparing fuel costs across different vehicles. Using premium fuel, while not strictly required, could subtly affect performance, though not drastically impact fuel economy.

Real-world expectations

While the EPA estimates provide a good benchmark, real-world fuel economy often differs. Drivers who spend most of their time in congested city traffic, with frequent hard acceleration, may see numbers closer to the low 20s. Those who primarily drive on the highway, maintain a steady speed, and use the cruise control liberally might achieve closer to 35 MPG. The XC40’s mild hybrid system helps in stop-and-go situations, but aggressive driving will always decrease fuel efficiency. Expect some variation, but the EPA figures are a solid starting point for estimating what you’ll spend on fuel.

How it compares

In the crowded field of compact luxury SUVs, the 2023 XC40 B4’s MPG is about average. The Lexus UX 250h, a hybrid SUV, achieves a significantly better 42 MPG combined, but sacrifices some practicality and cargo space. The BMW X1, redesigned for 2023, earns around 28 MPG combined, putting it very close to, but still slightly ahead of, the XC40. Audi’s Q3 offers similar performance and fuel economy to the XC40 at around 25 MPG combined. Buyers interested in the XC40 are likely cross-shopping these other models.

The Volvo’s appeal is in its design and brand image as well as fuel efficiency.

Tips to maximize efficiency

Gentle acceleration is best. Avoid stomping on the gas pedal, especially from a standstill. The XC40’s turbocharger responds quickly, but controlled inputs will save fuel. Let the engine and transmission work together smoothly.

Tire pressure is important, particularly on a smaller SUV like this. Check your tire pressures regularly and maintain the recommended PSI (printed on the door jamb). Underinflated tires create more rolling resistance, wasting fuel.

Reduce your cargo load. While the XC40 is spacious, avoid carrying unnecessary weight. Extra weight forces the engine to work harder, consuming more fuel. Clear out items you don’t need on a daily basis.

Use the Volvo’s drive mode settings. Select “Eco” mode when possible. This typically adjusts the throttle response and transmission shift points to prioritize fuel efficiency. It might slightly dampen performance, but can make a noticeable difference on longer trips.

Plan your routes to avoid stop-and-go traffic. Idling consumes fuel without covering any distance. Using navigation to find less congested routes can lead to smoother driving and better MPG. Even small changes in routes can add up over time.

Explore more about XC40 MPG across all years and all all Volvo fuel economy data.