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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  • ChristianWimmer It might be overpriced for most, but probably not for the affluent city-dwellers who these are targeted at - we have tons of them in Munich where I live so I “get it”. I just think these look so terribly cheap and weird from a design POV.
  • NotMyCircusNotMyMonkeys so many people here fellating musks fat sack, or hodling the baggies for TSLA. which are you?
  • Kwik_Shift_Pro4X Canadians are able to win?
  • Doc423 More over-priced, unreliable garbage from Mini Cooper/BMW.
  • Tsarcasm Chevron Techron and Lubri-Moly Jectron are the only ones that have a lot of Polyether Amine (PEA) in them.