| Engine | 2.0L 4-cyl |
| Transmission | Automatic (S8) |
| Drive | All-Wheel Drive |
| Fuel Type | Premium Gasoline |
| Vehicle Class | Small Sport Utility Vehicle 4WD |
| Trim | Hybrid |
| Engine Desc | SIDI; Mild Hybrid |
| Start-Stop | Yes |
| EPA Vehicle ID | 45561 |
The 2023 Volvo XC40 B5 AWD 2.0L achieves 26 MPG combined, a figure that won’t excite or discourage most buyers. This isn’t a vehicle bought for top-tier fuel efficiency, it’s a compact luxury crossover that emphasizes Scandinavian design, safety, and a premium driving experience. These attributes are often more important than ultimate frugality at the pump.
City and highway performance
The EPA estimates the 2023 XC40 B5 AWD at 23 MPG in the city and 30 MPG on the highway. The city figure reflects the stop-and-go nature of urban driving, where the XC40’s turbocharged 2.0-liter four-cylinder engine works harder. On the open road, the 30 MPG rating is more attainable, thanks to the smooth-shifting eight-speed automatic transmission, which allows the engine to cruise at lower RPMs. These figures should be considered benchmarks. Individual driving habits and terrain will influence real-world results. Exploring XC40 MPG across all years will show a similar trend.
Annual fuel cost
According to the EPA, the estimated annual fuel cost for the 2023 Volvo XC40 B5 AWD is $2,250. This figure is based on driving 15,000 miles per year and using national average fuel prices. This is just an estimate. Your actual fuel costs may vary depending on your driving habits, location, and prevailing fuel prices. The XC40 requires premium fuel, so the annual cost could easily exceed this amount if fuel prices remain high.
Real-world expectations
The EPA provides a standardized benchmark, but drivers can expect slightly different numbers in everyday use. Aggressive acceleration, frequent short trips, and prolonged idling can all lower fuel economy. Gentle driving, consistent highway speeds, and proper vehicle maintenance can help you approach or even exceed the EPA estimates. Many owners report real-world combined MPG figures in the 24-28 MPG range, suggesting that hitting the EPA’s 26 MPG is achievable with conscientious driving.
How it compares
The XC40 B5 AWD’s fuel economy is in the middle of its competitive set. The BMW X1 xDrive28i boasts an EPA-estimated 28 MPG combined, offering a slight advantage. The Audi Q3 45 TFSI quattro achieves a similar 25 MPG combined. The Mercedes-Benz GLA 250 4MATIC delivers around 26 MPG combined as well. The XC40’s distinctive styling, luxurious interior, and reputation for safety set it apart. These are deciding factors for its buyers. People shopping for the Lexus NX 350h hybrid, rated at 41 MPG combined, are a different kind of buyer. Those cross-shopping competitors in this class are trading between brands based on factors largely unrelated to saving one or two miles per gallon. If you are interested in all Volvo fuel economy data you will find that Volvo now includes a lot of electric models that get a lot better fuel economy than the gasoline-powered XC40.
Tips to maximize efficiency
Use the XC40’s driving modes. “Comfort” or “Eco” modes, if equipped, optimize the engine and transmission for fuel efficiency. Avoiding heavy acceleration and harsh braking will also significantly improve your MPG, regardless of the selected driving mode. Gentle acceleration and anticipating traffic flow help save fuel.
Ensure your tires are properly inflated. Underinflated tires increase rolling resistance, forcing the engine to work harder and consuming more fuel. Check your tire pressure regularly and inflate them to the recommended level. The correct pressure can be found on the driver’s side doorjamb or in the owner’s manual. Regular maintenance intervals will help prolong the life of your tires and also keep your fuel economy trending upward.
Minimize unnecessary weight in the vehicle. Extra cargo adds weight, impacting fuel economy. Remove any items you don’t need to carry regularly, such as sports equipment, tools, or unnecessary luggage. You might be surprised by how much weight you are carrying in your vehicle and how it can affect your fuel economy.
Avoid excessive idling. Letting the engine idle for extended periods wastes fuel and contributes to unnecessary emissions. If you anticipate stopping for more than a minute or two, it’s generally more fuel-efficient to turn off the engine. Modern engines restart quickly and reliably, avoiding any significant wear and tear from frequent restarts.