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EPA ratings for the new XC40 have been released and Volvo’s subcompact luxury crossover is one of the most fuel-efficient offering of its kind out there.

According to the U.S. Environmental Protection Agency, the XC40 T5 with AWD is rated at 23 mpg city, 31 highway and 26 combined.
Those numbers place the XC40 ahead of rivals like the $35,900 BMW X1 xDrive28i that delivers 22 city, 31 highway, 25 combined. There’s an even larger fuel economy gap when autoblog looked at the $35k Audi Q3 quattro, which is rated at 20 mpg city, 28 mpg highway, 23 mpg combined.

Though there is the more affordable Mazda CX-5 AWD and its city fuel economy rating of 24 mpg. Where Volvo’s offering does pull ahead is on the highway when compared to the Mazda’s 30 mpg, but these are small differences that ultimately results in a both models receiving a combined rating of 26 mpg.

Of course fuel economy is not everything and the XC40 has more to offer than just ratings. Its turbocharged inline-4 engine is mated to an eight-speed automatic transmission, which sends 248-horsepower to all four wheels. What’s more, the crossover is inexpensive at just $35,200. There’s also a less powerful XC40 T4 with front-wheel drive on the way, but EPA ratings for that variant has not been released yet.
 

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When it comes to SUVs and crossovers, I don't expect much in the fuel economy department but this comes as a nice surprise considering how heavy the car is with AWD and an automatic transmission. The Mazda CX-5 may be slightly better, but the XC40 is just better overall and more than makes up for that 1mpg difference.
 

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I think 26mpg is a good starting point for this model. Volvo alike most other automakers have big plans for electrification and I'm sure down the line we'll see a hybrid variant of the XC40. Considering its size, weight and luxury styling I think most interested buyers will be more than happy with where it sits in the segment.
 

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Fuel Efficiency

My XC40 isn't getting fuel efficiency anywhere near these numbers. 85% of my driving is in the city, regardless, my car tells me it is getting 19.9 MPG. Are others getting similar performance?
 
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