What's the Volvo XC40 Getting Into? America's Subcompact Luxury Crossover Segment Is Tiny But Growing Fast

Of the 1.4 million new vehicles sold in the United States of America each month, premium auto brands account for slightly more than one out of every ten new vehicle acquisitions.

More than 55 percent of the vehicles now sold by premium auto brands in America are utility vehicles. Of the nearly 100,000 luxury SUVs/crossovers sold in America each month, 7 percent are subcompacts, vehicles positioned below the compact BMW X3, Mercedes-Benz GLC, Audi Q5, and a variety others.

It’s a sliver of a slice of a chunk of a pie. But that sliver is growing far faster than the overall U.S. auto market, far faster than the U.S. luxury vehicle market, and far faster than the U.S. luxury SUV/crossover market.

Into that four-vehicle premium subcompact crossover segment now jumps the Volvo XC40, timed to roughly coincide with the arrival of the Jaguar E-Pace. It’s a segment that, to date, no automaker has yet found a way to dominate.

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Volvo XC40 Will Be Fresh, Creative, and Distinctive - Unlike Its Competitors, Volvo Says

There’s no denying the Volvo 40.1 concept that previewed this fall’s production XC40 appears both to be sufficiently Volvo-like and sufficiently unlike anything else.

If the actual Volvo XC40 maintains this relatively unusual design, Volvo will have a viable, eye-catching alternative to the Audi Q3, BMW X1, Infiniti QX30, and Mercedes-Benz GLA before most luxury auto brands.

As for the Q3, X1, QX30, and GLA, Volvo isn’t entirely sold on their merits.

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Love for Luxury Cars in California and Florida Is Skewing National Luxury SUV Market Share

Depending where you live, it’s possible the shift away from luxury cars to luxury SUVs is dramatically more apparent than America’s nationwide figures suggest.

In 48 of 50 states, luxury utility vehicles outsell luxury cars. In seven states, premium brand utility vehicles form more than 65 percent of the premium market.

But according to Edmunds, the two states in which luxury cars still outperform luxury utility vehicles account for 31 percent of America’s luxury SUV market.

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  • The Oracle Well, we’re 3-4 years in with the Telluride and right around the time the long term durability issues start to really take hold. This is sad.
  • CoastieLenn No idea why, but nothing about a 4Runner excites me post-2004. To me, they're peak "try-hard", even above the Wrangler and Gladiator.
  • AZFelix A well earned anniversary.Can they also attend to the Mach-E?
  • Jalop1991 The intermediate shaft and right front driveshaft may not be fully engaged due to suspected improper assembly by the supplier. Over time, partial engagement can cause damage to the intermediate shaft splines. Damaged shaft splines may result in unintended vehicle movement while in Park if the parking brake is not engagedGee, my Chrysler van automatically engages the parking brake when we put it in Park. Do you mean to tell me that the idjits at Kia, and the idjit buyers, couldn't figure out wanting this in THEIR MOST EXPENSIVE VEHICLE????
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