BMW X3 vs Volvo XC60

What's the difference?

If a BMW X3 is for you, then we have no quarrels with that. It’s a better all-round vehicle than the one it replaces and represents better value. And even though BMW mandates a hybrid driveline, there are still some significant choices within that framework.

By all means buy the M50 if you crave the rush of acceleration that almost 300kW can provide. And if efficiency is your altar of choice, then the plug-in 30e makes a lot of sense, too.

But even if you can afford either of those two more expensive variants, whatever you do, don’t dismiss the entry-level 20 model. At least drive it alongside the others and then make a decision based on all the facts, and not the assumption that entry-level equals the car you afford rather than the car you want.

It might be cheaper, but there’s absolutely no doubt that the 20 model is the one that shines and arguably makes the most of the opportunities BMW’s latest tech offers.

Sometimes less really is more.

Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.

The Volvo XC60 Ultimate B5 Bright is a fine example of a family car that actually caters to families. There are plenty of practical features inside to help everyday living and it has a good amount of occupant and boot space for the class. I like how it handles on the road and its running costs are reasonable for a luxury SUV. It's not as flashy as its rivals but it's still stylish.

My husband and son spent a lot of time in the XC60 and they have enjoyed a high-level of comfort on our journeys together. We all love the built-in booster seats in the back row because of the independence they offer.

It might be badged an X3, but this is no small vehicle. In fact, it’s bigger than the original BMW X5 (which set the tone for this entire market segment) with a length of 4755mm (4667mm for the first X5) and a width of 1920mm (1872mm). That said, it’s 25mm lower than the outgoing X3 in a move to emphasise its sportiness. Shorter it may be, but it’s also 16mm wider on the front track and 45mm wider on the rear than the outgoing model.

BMWs latest styling cues also appear in the new car, including the large, split-kidney grille that, for Australian-delivered cars, is also lit around its edges. The short overhangs that characterised the original X5 (and soon characterised this whole BMW genre) remain, and the T-graphic LED tail-lights round out the stylistic touches.

The other thing we noticed (and we’ve seen it on other cars recently) is a panoramic sunroof that doesn’t actually open.

The XC60 looks mature and graceful with its wide stance and well-proportioned body. The pronounced bonnet and stylish grille confirm its luxury SUV credentials.

The LED headlight design has been inspired by ‘Thor's Hammer’ (gotta love that Scandi heritage!) and the chrome accents around the windows accentuate the optioned darker tint.

Despite having a stately kerb-side presence, it’s not a boring looking car. The 20-inch dual-coloured alloy wheels and sleek body panelling help the XC60 appear almost sporty. Overall, its exterior design looks like it will age well.

The interior style of the XC60 can be summed up in two words - understated elegance.

The cabin isn't as flashy or wowing as some of its rivals and that might be because it lacks the visual impact of customisable ambient lighting, or because the chunkier dashboard looks more solid and dependable than sleek and fancy.

Regardless, the high-quality leather-accented upholstery and trim options elevate the space to earn the 'luxury' tag.

There is a plethora of soft-touchpoints throughout the car and visual highlights like chrome accents, an illuminated crystal shifter by Orrefors and a solid-feeling steering wheel.

Cabin space is plentiful in the X3 with loads of room in the front, possibly thanks to the dashboard that is pulled back from you with only the twin screens and steering column offering themselves up to the driver. Even the air-vents are somewhat hidden. There’s good vision out and the seats themselves are lovely. The step into the cabin feels to be at just the right height, too; not too high, not too low.

Rear seating is good, too, although the X3 will always be better as a four seater than five thanks to the shape of the rear bench, but the glass roof opens the space up and there’s plenty of charging points and storage nooks. The sun blinds on the rear-side windows of the more expensive versions should be standard kit on every car sold in Australia.

We’ll take exception to the new gear-selector which doesn’t have a defined Park position and instead relies on applying the park-brake to engage Park. But the ambient light and contrasting cabin colours are a bit of a breath of fresh air.

There are levers in the cargo area to quickly fold the rear seats (60:40) at which point luggage space jumps from 570 litres in the mild hybrid cars to 1700 litres. The battery-pack of the 30e model means that luggage space starts at 460 litres and can be expanded to 1600 litres.

The latest version of BMW’s sometimes controversial iDrive operating system is simpler and easier to use than before and supported by a new operating system, but there’s still some familiarisation necessary. One improvement has been the addition of QuickSelect which works somewhat like the old favourites button system and gets around the need to drill into menus to access the functions you want.

A head-up display is a terrific addition, although where some displays are more tolerant of polarised sunglasses, the HUD in the BMW didn’t like mine and went dark at the most inconvenient angles.

None of the X3 variants feature a spare tyre of any sort. The 19-inch tyres on the base grade are run-flats, while everything else gets a repair kit for roadside emergencies.

If you want to tow, the good news is that all X3 variants can do so. But you will need to purchase the $2200 towing package which enables the X3 to haul a trailer weighing up to 2000kg with a maximum tow-ball down-weight of 200kg.

Families will appreciate the XC60's cabin. Both rows of seating are roomy for the class and the front seats are supportive and comfortable with multiple adjustments available.

However, there is an electric toggle dial that controls the lumbar-, side-, and under-thigh supports as well as the massage function, but flipping between modes can be a bit confusing at first.

I enjoy having the practical two-position memory function on both front seats, as I’ve been travelling a lot with my husband and the heat/ventilation features on the front seats have been great during a recent run of strange weather.

The back seats are well-cushioned and the bench is wide with three adults being able to sit without too many grumbles. 

I have plenty of room for my 168cm height and my seven-year old is able to get in and out without any trouble thanks to the higher ground clearance.

Our absolute favourite feature is built-in child booster cushions in the outboard seats. They have two height positions to accommodate different heights/weights and it’s been wonderful for my son to have the autonomy of buckling himself in. But also just awesome for my husband and I because it’s one less thing to think about! 

Storage throughout the car is good for the class with the front enjoying a mid-sized middle console, large glove box, two cupholders and two large drink bottle holders. The extra-large storage bins in the front doors are also very handy. 

In the rear, you have two retractable cupholders in the fold-down armrest, two map pockets and two drink bottle holders in each door.

The other amenities are great with the individual climate control and four sets of directional air vents – ideally located on the back of the centre console and on the B-pillars. 

Charging options are solid with both rows enjoying two USB-C ports and the front also getting a 12-volt outlet and wireless charging pad. The boot has a 12-volt socket, too.

Onto the other technology, the 9.0-inch touchscreen multimedia system is responsive and relatively easy to get around once you spend some time with it. Along with the Google subscription, you also get wired Apple CarPlay and Android Auto. 

The 12.3-inch digital instrument cluster shows the navigation map and the head-up display incorporates directions, which is great.

The cluster itself isn’t customisable, though, and I like fiddling with things like that to personalise the driving experience.

Another practical feature is a secondary key fob which can be programmed to control the maximum speed the car can travel and the audio volume.

I'm sure this would be handy for parents of any P-platers out there who often borrow the family car.

The key fobs are easily distinguishable. too. The spare for our test vehicle is a bright orange colour, so there are no 'whoops, I grabbed the wrong key' arguments, either.

The boot space is a great size at 483L offering plenty of room for holiday luggage. The back seat has a 60/40 split and a ski-port to open up storage options.

The loading space is level and there is a temporary spare tyre underneath the floor. You can adjust the height of the car using the air suspension and I love a powered tailgate.

There are four variants for the XC60, split evenly between the B5 petrol engine and the T8 plug-in hybrid. Our test vehicle is the top-spec Ultimate grade coupled with the B5 petrol engine.

Without any packages, this combination will cost $80,990, before on road costs, which is a $1000 price hike for the 2024 model year.

The standard features list for the XC60 is robust and there are some great premium features, like the electric and heated front seats that feature electrically adjustable under-thigh support, lumbar support and side-bolster support.

The front seats also have a two-position memory function, which I find helpful whenever I share the driving with my husband as there is no hassle for me to get back to a comfy driving position after he drives! 

Other premium features include a heated steering wheel, pre-entry climate control (perfect for those super-hot days), premium leather-accented and high-quality trims to choose from.

The technology highlights include a complimentary four-year subscription for the built-in Google Assistant, Google Maps and Google Play Store which are accessed via the portrait-style 9.0-inch touchscreen multimedia system.

There is a 12.3-inch digital instrument cluster, wired Apple CarPlay and Android Auto and a very handy four-zone climate control system.

Other practical features include a handsfree powered tailgate, keyless entry, keyless start, coloured head-up display and a ticket holder on the windscreen, for those odd occasions where you have a physical ticket!

Now, here come the optional packs our model has been fitted with. There’s the 'Climate Pack' for $150 that adds headlight cleaners and a 'Lifestyle Pack' for an additional $13,800.

The latter sounds expensive but you get some lovely features in the pack, like a panoramic sunroof, improved Bowers & Wilkins sound system, Nappa leather upholstery, front seat ventilation, front seat massage function, air suspension and tinted rear windows.

Add on $2050 for the 'Thunder Grey' paintwork and it slides in at $96,990, before on-roads. and that places it towards the top-end of the market compared to its rivals, but the BMW X3 xDrive30i M Sport still just beats it with a $97,900 price tag.

Hybrid tech across the board is the key phrase here, with the base-model 20 xDrive fitted with a mild hybrid electric motor and battery pack that works in conjunction with the 2.0-litre, turbocharged petrol four-cylinder engine. Power is 140kW and torque 310Nm. Like most mild hybrids, the electric motor offers power regeneration during braking, a mellow (by EV standards) kick in the pants during take-off and acceleration and also acts as the car’s starter motor.

The performance flagship, the M50 xDrive taps into the same technical philosophy with a mild hybrid augmenting the turbocharged six-cylinder inline petrol engine. In this case, however, peak power is a hefty 293kW and torque maxes out at 580Nm.

The most technically adventurous X3 is the 30e xDrive which uses plug-in hybrid tech to offer a claimed 91km of electric driving, about twice that offered by the original X3 PHEV it replaces. When the same 2.0-litre four-cylinder petrol as fitted to the 20 xDrive, and the electric motor are humming along together, there’s 220kW of power and 450Nm for the taking. The PHEV X3 can run in purely electric mode at up to a claimed 140km/h.

All variants use BMW’s familiar eight-speed automatic transmission and in each case, drive is sent to all four wheels on a permanent basis. Interestingly, the 30e and M50 versions package their electric motor as part of the engine-transmission combination. The 20, meanwhile, places its electric motor externally, as part of the drive-belt rotating assembly.

The M50 model has an M button that unleashes the full performance with one touch, and features an electronically locking rear differential in the interests of high-speed turn-in.

Adaptive suspension that varies the degree of damping is also part of the package on each X3 variant.

Volvo is aiming to offer only fully-electric powertrains from 2026 and the new XC60 B5 petrol variants feature a mild-hybrid element designed to improve fuel economy, especially in stop-start traffic.

Our test vehicle has a 2.0-litre, four-cylinder, turbo-petrol powertrain with a maximum power output of 183kW and 350Nm of torque. It’s an all-wheel drive and has a smooth eight-speed auto transmission.

As you might expect, the PHEV 30e model is the efficiency superstar of the X3 line-up with an official combined test figure of just 1.6 litres per 100km and 38 grams of CO2 per kilometre. The four-cylinder 20 xDrive is not bad for its size at 7.5L/100km (and 171g), yet the bruising six-cylinder M50 version with all that performance is not too far behind with an official figure of 8.2L/100km (187g).

The 30e PHEV features a selectable battery-saving mode as well as the option of forcing EV-only running. It features a 19.7kWh battery and BMW claims it can charge using a three-phase, 11kW socket from empty to full in two hours, 15 minutes. It does not make use of fast-chargers.

Exactly how far you’ll travel in the PHEV model will depend hugely on how and where you drive. On long, open road journeys, fuel consumption won’t be much different to the others, but with just a 50-litre fuel tank, it’s range won’t be stellar. But in urban running where the batteries are being recharged for free as you brake, the difference will be significant. Meanwhile, with a 65-litre fuel tank in the mild hybrid grades, the theoretical range (based on the official fuel number) is 865km and 765km for the 20 and M50 respectively.

While BMW recommends premium fuel for maximum efficiency, it also says that each X3 variant will not be harmed by the use of standard ULP if that’s all you can get hold of.

The official combined cycle fuel figure is 7.6L/100km and my real-world usage averaged 8.1L/100km.

That’s pretty economical given that I cover a good mix of open road and urban driving and am not precious with the power.

Based on the combined cycle number and the large 71L fuel tank, expect a driving range of around 934km. To give you an idea of time between fills, I drove it for 14 days before having to fill up.

You can’t sneak in any blends or lower grade fuel though as Volvo recommends a minimum 95 RON premium unleaded be used.

Big heavy SUVS like this one haven’t always been too dainty on their feet. The extra bulk and height mean suspension has to be firmer, the big wheels and subsequent loss of tyre sidewall depth plays against ride quality and before you know it, the compromises have piled up and the driving experience has gone to hell.

This time, however, BMW’s claim that the X3 was designed from the start as an SUV and not converted from a sedan platform seems to hold water. There’s an overall greater sense of cohesion in the way the car steers and flows through corners and faster bends. The steering feel and feedback are a big part of that, too, and the whole seems at least as great as its parts.

The M50 is, predictably, a rocket with loads of accessible acceleration and a great noise while you’re enjoying it. That said, the 21-inch wheels and tyres don’t do anything for ride quality, but it remains an entertaining performance car in a familiar, ICE kind of way.

The plug-in is also perky with its 220kW on tap, but it’s less old-school and more techy. And while you can’t pick the point at which ICE hands over to electric and vice-versa, sensitive drivers will absolutely know that there’s a big dollop of electrical assistance when your right foot starts asking the tough questions. It definitely feels more overtly hybrid, though that shouldn’t be any kind of surprise, purely because that’s precisely the case.

Which brings us to the 20 entry-level grade. And while it’s going to be a controversial statement, this emerges as the most cohesive, rounded variant of the new X3. There’s something in the way the fizzy, bubbly (but very smooth) 2.0-litre four-cylinder provides more than enough urge, but never threatens to dominate the dynamics.

With less weight over the front wheels than the M50, and less weight overall than the PHEV, the 20 corners flatter, steers more intuitively and is simply more fun more of the time. Even on the optional 20-inch tyres, it rides better than the others, too, and might even be better again with the standard 19s other than the fact that those are run flats and we didn’t get try them.

The XC60 is a relaxing car to drive, it does what you expect it to do most of the time. It has enough power to handle open-road touring with ease and while the suspension is on the firmer side, the ride feels well-cushioned.

The only time it skips a beat for me is when you're easing off the accelerator, slowing down, but then need to pick up speed again.

Say, when you find a gap in traffic and begin to merge. There can be a short delay before acceleration happens and it feels somewhat clumsy. But these moments are few and far between.

The cabin is quiet, with minimal wind and road noise. Our family had no issues chatting. It only gets loud inside when heavy rain hits that big panoramic sunroof.

Adaptive steering makes the XC60 feels nimble and horribly tight city streets less daunting. It’s easy to manoeuvre in a small car park, as well.

The clear 360-degree camera system and sensitive front and rear parking sensors also help to make light work of a parking. 

BMW’s warranty on the X3 is the company’s usual five-year/unlimited kilometre deal. But in this case, there’s also a six-year/100,000km warranty on the high-voltage battery.

Also typical for BMW is the service interval which is not a set time or distance and instead is determined by how the car has been used. It’s called condition-based servicing and it’s nothing new at BMW.

There’s also capped-price servicing available. For the X3, the five-year/80,000km service package is $2475.

It’s not often common to associate a luxury brand with reasonable on-going costs but the Volvo XC60 is offered with very competitive pricing and terms.

The five-year/unlimited km warranty is normal for the class but you can pre-purchase a three-year/45,000km or a five-year/75,000km servicing plan.

The three-year plan is priced at $1750 (averaging $583 per service) and the five-year plan is priced at $3000 (or an average of $600 per service). Both plans are cheaper than a pay-as-you-go option and are inexpensive compared to some rivals.

Servicing intervals are good at every 12 months or 15,000km, whichever occurs first.