Volvo XC60 Review Australia | Luxury SUV with Hybrid Option

The Volvo XC60 has long been recognised as a standout in the luxury mid-size SUV segment, striking a balance between sleek Scandinavian design, advanced safety systems, and eco-friendly performance. In Australia, where family SUVs dominate suburban driveways and weekend road trips, the XC60 has carved a reputation for comfort, understated style, and practicality.

With Volvo’s increasing shift towards electrification, the XC60 now comes with a plug-in hybrid (PHEV) option, alongside efficient petrol and mild-hybrid powertrains. For Australian buyers considering a premium SUV that doesn’t sacrifice sustainability, this car deserves serious attention.

This in-depth review covers the XC60’s design, interior comfort, hybrid performance, safety, driving dynamics, ownership costs, and how it stacks up against rivals in Australia. Whether you’re a family driver, a city commuter, or a tech-savvy luxury buyer, this guide will help you decide if the XC60 is worth the investment.

Scandinavian Design Philosophy

Volvo has built its brand identity on minimalist design, and the XC60 exemplifies this approach. Unlike some German rivals that emphasise bold, aggressive lines, the XC60’s exterior conveys elegance and calm confidence.

Its signature “Thor’s Hammer” LED headlights, sculpted bonnet, and clean proportions make it stand out without being flashy. The upright stance gives it SUV practicality, while the flowing roofline adds sophistication.

For Australian buyers, this design language appeals to those who want luxury but without the ostentatious presence of a BMW X5 or Mercedes-Benz GLE. It’s the kind of car that feels premium in the driveway of a suburban Melbourne home or parked at a Sydney CBD office.

Interior: Where Comfort Meets Technology

Step inside the XC60 and you’re greeted by what Volvo does best — a serene, luxurious cabin inspired by Scandinavian living spaces. The focus is on natural materials, minimalist design, and high-tech usability.

• Materials: Leather upholstery, driftwood inlays, and optional wool-blend fabric seats set a unique tone. Unlike rivals, Volvo avoids over-blinging interiors.
• Infotainment: The XC60 runs on an Android Automotive-based infotainment system, meaning Google Maps, Google Assistant, and Play Store apps are seamlessly integrated. For Australians already deep into the Android ecosystem, this makes the system intuitive. Apple CarPlay is also supported.
• Comfort: The ergonomic seats are some of the best in the industry — supportive for long trips yet soft enough for city drives. Ventilation, heating, and massaging options are available in higher trims.
• Space: Rear passengers get generous legroom and headroom, and the flat-floor design (thanks to clever packaging) makes it more comfortable for three adults in the back. Boot space sits at a practical 468 litres, enough for family luggage or golf bags.

Performance Options in Australia

The XC60 lineup in Australia is diverse, catering to different buyer needs:

• Mild-Hybrid Petrol (B5 & B6): Balances efficiency with performance. Smooth and adequate for daily commutes and highway drives.
• Plug-in Hybrid (Recharge T8): Combines a turbocharged petrol engine with an electric motor, producing up to 340–455 hp (depending on spec). It offers around 70–80 km of pure electric driving — enough for most urban commutes without using petrol.
• All-Wheel Drive (AWD): Standard on most trims, ensuring stability for road trips across Australia, whether on highways or gravel backroads.

The hybrid option is particularly appealing for Australian city dwellers who want to cut fuel costs and emissions while still enjoying long-distance flexibility.

Driving Experience

Volvo has fine-tuned the XC60 to prioritise comfort and safety over outright sportiness. This doesn’t mean it’s dull — the XC60 is responsive, refined, and capable — but it’s more about serenity than adrenaline.

• Ride Comfort: The suspension absorbs bumps with ease, making it ideal for Australian roads where rough patches are common outside major cities. Adaptive air suspension (optional) enhances comfort further.
• Handling: Predictable and composed, though less sporty than a BMW X3. Perfect for relaxed, confident driving.
• Noise Levels: Exceptional cabin insulation keeps road and wind noise minimal, contributing to a luxury feel.

Hybrid Efficiency and Sustainability

Australia’s shift towards electrification is still in progress, but the XC60 hybrid plays an important transitional role.

• Plug-in Hybrid (PHEV): Offers EV-like driving for short commutes. If you live in Sydney, Brisbane, or Melbourne, daily errands can often be completed on electric power alone.
• Fuel Economy: The hybrid version significantly reduces petrol consumption if charged regularly.
• Green Appeal: For environmentally conscious buyers, owning a hybrid SUV from a brand that has committed to becoming fully electric by 2030 aligns with sustainable values.

Safety: Volvo’s Strongest Card

Volvo’s reputation for safety is legendary, and the XC60 continues that tradition. It has consistently scored 5-star ANCAP safety ratings.

Key features include:

• City Safety with pedestrian, cyclist, and animal detection
• Lane keeping aid and adaptive cruise control
• Blind-spot monitoring with steering support
• Pilot Assist (semi-autonomous driving on highways)
• 360-degree camera and parking sensors

These systems make the XC60 one of the safest SUVs in Australia, especially appealing for families.

Price in Australia

The XC60 sits in the premium mid-size SUV bracket, with pricing that reflects its luxury positioning:

• Entry-level petrol mild-hybrid models start around AUD $73,000–$78,000 before on-roads.
• Mid-spec trims climb into the $90,000 range, offering more features and tech.
• Hybrid Recharge models push into $100,000–$115,000 territory, depending on options.

While not cheap, the XC60 competes well against the BMW X3, Audi Q5, and Mercedes-Benz GLC. Considering the hybrid’s electric driving range, lower running costs, and Volvo’s strong resale value in Australia, it represents solid value for luxury buyers.

Ownership and Running Costs

Running costs are always part of the decision, especially for Australian households balancing luxury with practicality.

• Fuel Efficiency: Hybrid models can drastically cut petrol expenses if regularly charged.
• Servicing: Volvo offers pre-paid service plans, helping control costs.
• Warranty: Volvo Australia provides a 5-year/unlimited km warranty, with 8 years/160,000 km warranty on hybrid batteries.
• Insurance: As a luxury SUV, premiums will be higher than mainstream brands, but Volvo’s strong safety record helps balance this.

Rivals in Australia

The XC60 competes with:

• BMW X3: Sportier drive, less focus on comfort.
• Audi Q5: Similar blend of luxury and tech but less sustainable options.
• Mercedes-Benz GLC: More prestige badge appeal, but often pricier.
• Lexus NX: Strong hybrid reliability, but less premium in design.

What sets the XC60 apart is its Scandinavian uniqueness, focus on sustainability, and segment-leading safety.

Who Should Buy the Volvo XC60?

The XC60 is ideal for:

• Families wanting a safe, spacious luxury SUV.
• City commuters who benefit from hybrid efficiency.
• Buyers tired of German brands looking for something stylish but understated.
• Environmentally conscious Australians aiming to reduce their carbon footprint.

Verdict: Is the Volvo XC60 Worth It in Australia?

The Volvo XC60 is a top contender in the luxury mid-size SUV class, offering comfort, advanced safety, hybrid efficiency, and timeless Scandinavian design. While it doesn’t deliver the sporty punch of some German rivals, it delivers in the areas that matter most to Australians: safety, practicality, comfort, and value.

For buyers ready to embrace electrification without fully committing to an EV, the XC60 Hybrid Recharge stands as a smart, future-proof option. Combined with Volvo’s growing reputation in Australia for reliability and resale value, the XC60 earns its place as one of the best luxury SUVs on the market today.