The XC60 T8 Ultra truly does offer “ultra” luxury, but its price is similarly elevated
Since time immemorial, Volvo has carefully straddled the line between “premium” and “luxury,” especially in North America, where its status as a European import has long afforded it a semi-exotic appeal. Today, however, with the 2026 Volvo XC60 T8 Plug-In Hybrid SUV, especially in “Ultra” guise, as tested, the brand clearly aims to compete directly with luxury heavyweights like Audi, BMW, and Mercedes-Benz. After spending a week behind the wheel, I wanted to know if this refreshed XC60 T8 Ultra—a plug-in hybrid luxury compact SUV with a starting price of $70,950 (CAD 83,200 as tested)—genuinely delivers the refinement, performance, and efficiency to justify its price tag.
Cole Attisha
Truthfully, even now that my week behind the wheel of the 2026 Volvo XC60 T8 Ultra has come to an end, I’m not entirely sure that I’ve seen any tremendous value here. These days, traditionally “non-luxury” brands have come closer than ever to blurring the lines between what constitutes an “economy car” versus a “luxury car.” Hell, Mercedes-Benz will still force you to cough up a few hundred extra bucks for options as basic as heated rear seats—features that come standard even on lowly-equipped Hyundais.
The Volvo badge doesn’t quite carry the same authority as a three-pointed star or four shiny rings, yet those detail-obsessed Swedes still ask for a sum of money comparable to the cost of a Mercedes-Benz GLC, an Audi Q5, or a BMW X3. For me to admit that the XC60 T8 Ultra offers compelling value at its price point, it would not only have to be competitive with its immediate German rivals in terms of luxurious amenities, appointment quality, and engaging driving dynamics, but it would also need to somehow justify its substantial premium over similarly-equipped “non-luxury” alternatives from brands like Mazda and even Hyundai.
Cole Attisha
First impressions
At first glance, the Volvo XC60 T8 Ultra is gleamingly handsome. It still exudes that signature understated elegance that buyers expect from Volvo, but it doesn’t hide the fact that it’s an expensive vehicle. My test vehicle’s 21-inch 5-V Spoke Glossy Black Diamond Cut Wheels (an $800 option), paired with its richly-layered Forest Lake paint job, which is mostly gray but has subtle green hues under harsh lighting, elevated the aesthetic appeal of the XC60 immensely. This generation of Volvo’s mid-level crossover has been around since 2018, but with its updated grille, contemporary wheel designs, and unique paint color offerings, you’d hardly ever realize it.
Cole Attisha
That very same sentiment extends into the interior as well. As the great Jeremy Clarkson pointed out in his own recent assessment of the XC60, it has a stunning, Orrefors crystal gear lever, and it is indeed a centerpiece highlight not just of the interior, but of the whole vehicle. There’s a strong sense that the same level of craftsmanship that went into producing the XC60’s miraculously tactile crystal gear knob has also dictated the quality standards of the entire SUV. Still, some aspects of the XC60 don’t feel as appropriately premium as one might expect from a vehicle at its price point.
Cole Attisha
The interior experience
Once again: Orrefors crystal shift knob. Open-pore, raw-finish white wood trim. Blonde ventilated Nappa leather upholstery. $3,200 Bowers & Wilkins optional premium sound system. All of these thoughtful elements tick many of the right boxes for the XC60 to be considered a “luxury” car. Still, they’re contrasted by other elements which seem like relative afterthoughts, such as the central infotainment screen that looks like a massive knock-off iPad tacked onto the dashboard with an aftermarket mount, and the cheap-o black-plastic steering wheel buttons, which don’t at all match the tactility of more old-school buttons like the window switches, the power tailgate release button, and fuel door button.
Cole Attisha
Cole Attisha
Cole Attisha
Cole Attisha
Cole Attisha
The atrociously large and out-of-place infotainment screen felt even less premium when I actually tried to use it. When the system did manage to detect my phone, it often required a complete vehicle restart to allow pairing for media use, rather than just for phone calls. When I tried to play music through Spotify via Bluetooth, the album cover of the previously played song would always display, even though the correct song name was shown. This issue persisted even after multiple resets of the infotainment system. Unfortunately, this kind of design and this level of infotainment glitchiness is not entirely unheard of in this segment these days. So, these complaints are not necessarily unique to the XC60, and other than those relatively minor glitches, the multimedia system is simple to navigate and mostly intuitive. I still, however, lament the fact that almost all of the interior buttons and controls have been relegated to the screen, but again, this is not unique to the Volvo.
Cole Attisha
Cole Attisha
Cole Attisha
Cole Attisha
Overall, the XC60 T8 Ultra’s cabin is aptly luxurious, combining the familiar ergonomic elements of traditional Volvo interiors with the creatively stunning aesthetics buyers expect from modern luxury vehicles and excellent fit and finish to boot. No matter what you train your eyes on in the XC60’s cockpit, you’ll be met with design that looks aesthetically pleasing and, most importantly, welcoming. Run your fingers along any of its surfaces, whether it be leather, genuine crystal, open-pore wood, or even soft-touch plastics, and the XC60’s cabin feels just as high-quality as it looks.
Cole Attisha
Driving impressions
As soon as I realized that paddle shifters were absent and there’s no way to control shifting from the crystal gear selector manually, I understood that the XC60’s driving dynamics were geared towards one thing above all else: comfort. Comfort is abundant in the XC60. Whether we’re discussing its cushiony seats or the excellent ride provided by its intelligent adaptive air suspension system (a $1,800 extra) that soaks up every imperfection in the road like salicylic acid attacking pimply skin, there is no doubt that the XC60 succeeds in its endeavor to deliver supreme levels of comfort. Still, with a combined 455 horsepower on tap from its turbocharged 2.0-liter plug-in hybrid powertrain, I was hopeful that the XC60 could still inspire enthusiasm on a spirited drive, just as its sporty German rivals do. When it came down to it, I was honestly surprised.
Cole Attisha
With its impressive 455-horsepower figure, the XC60 offers more muscle than the Mercedes-AMG GLC 43, the Audi SQ5, and the BMW X3 M50, and you sure as hell feel it when you plant your right foot to the floor. This thing absolutely rips, and its instant torque delivery will throw you and your passengers right back into your well-cushioned seats should you desire. It corners surprisingly well, too, even if its steering does feel a bit disconnected, and I think I’d mostly attribute that fact to its impressive adaptive air suspension system, its sticky Pirelli Scorpion Zero tires, and its trick all-wheel drive system. Despite all its road manner high points, the XC60 still lacks the sense of “sportiness” that its German counterparts excel at. While powerful, it comes on smoothly, and there’s a sense that the power is more about drama-free acceleration rather than a symphonic opera of sounds like what you might expect from the BMW or even the Audi.
Thus, if you’re after the XC60 purely because it’s the most powerful of the bunch, and thrilling performance is your genuine desire, you might be better off with something German. However, suppose superior comfort, smooth yet capable acceleration, and uncomplicated handling are traits that speak to you more. In that case, the XC60 excels at delivering “hidden” performance that gets you where you need to go, quickly, without making you or your passengers feel sick. If the BMW X3 M50 blends performance and comfort but leans more towards the performance end of the spectrum, then the XC60 is the polar opposite, delivering a similar blend with a more generous dose of plushness. If you’re after comfort over sportiness, and still insist on cross-shopping, consider pitting it against the Lexus RX Plug-In Hybrid EV or the Electrified Genesis GV70.
Cole Attisha
The real verdict
To put it simply: the Volvo XC60 T8 is the perfect middle-ground between the aggressively sporty BMW X3 M50 and the soft, plush Lexus RX PHEV. Yes, it may not exude the more sensual exhaust tones as turbocharged straight-six or inline-five-powered XC60s of years gone by. Still, it’s a package that offers a truly modern blend of performance and comfort that will quickly make you forget how old the model’s underpinnings are by now. The XC60 T8 may not have been the growly five-pot performance wagon that I so helplessly wish Volvo would give us once again, but it still satisfied the inner Volvo-lover within me that understands a good Volvo is simply a thoughtful and intelligent vehicle. The 2026 XC60 T8 Ultra is indeed both of those things.
So, tell me, would you ever consider the Volvo XC60 T8 over sportier offerings from Mercedes-AMG, BMW, and Audi, or even over rivals such as Lexus, which boasts an exceptional reputation for durability and competitive resale value? Do you think the XC60 still looks fresh and modern, or does its aging platform show its wrinkles? Let me know what you think in the comments!
About the author
Cole Attisha
Staff Writer, Autoblog