Lexus RZ vs Volvo EX40: Tesla Model Y rivals go head-to-head in electric SUV battle

It seems that the Tesla Model Y has become something of a default choice in the electric SUV sector, but there are plenty of alternatives available if you want a break from the norm. One that stands out is the Lexus RZ, with its dramatic bodywork and a cabin that beats the Tesla for premium appeal.

There’s a new addition to the line-up, too, with the existing dual-motor, four-wheel- drive RZ 450e being joined by the single-motor RZ 300e. This version helps to lower the starting price of the range, but because it has the same battery as the 450e, it can also travel further on a charge. It’s available in identical trim levels to the 450e, so there’s a decent amount of kit even on the base model.

The rival we’ve lined up here looks familiar, but Volvo has rebranded the all-electric version of the XC40 as the EX40, so that it matches the rest of the Swedish firm’s electric models. It’s also been given Volvo’s latest infotainment software, and this compact electric SUV was a pretty decent machine in the first place. We’re testing it in single-motor guise to match the Lexus, but whether you choose the standard or long-range battery it undercuts its rival here on list price.

Lexus RZ

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While Lexus is an expert in hybrids, its all-electric line-up has faltered a little so far. The RZ is based on the same running gear as the Toyota bZ4X, and it slots between the NX and RX in terms of size and price. 

As with those models, there are now two powertrain options in the RZ following the arrival of the 300e tested here. It uses the same 71.4kWh battery as the 450e, so your choice is to pick two-wheel drive or stump up around £5,500 extra for the more powerful four-wheel-drive variant.

Tester’s notes

Take a quick glance at the tyres on the RZ, and you might assume that the wrong fitment has been made at one end or the other. But there are different sizes used, with 235-section rubber for the front axle and 255-section tyres on the rear. 

It seems odd for a front-wheel-drive car to have fatter rear tyres, but the RZ’s rear track is also wider by 15mm, and the difference is designed to boost the car’s handling. Interestingly, the platform-sharing Toyota bZ4X and Subaru Solterra have the same tyre sizes at each corner.

Distinctive Sonic Copper metallic paint is a surprisingly affordable option that costs only £250, and is worth paying for just to have something that stands out in a monochrome new-car market. 

Premium Plus and Takumi models can be had with Bi-Tone paint, which adds a black bonnet and roof in contrast with copper, grey/blue or dark grey for the rest of the bodywork for £1,100 extra. The 20-inch alloys that are standard with Takumi trim can be added to Premium cars for £900, but they will reduce the car’s range.

Volvo EX40

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It’s a new name, but the EX40 is all but identical to the electric XC40 Recharge that it replaces. That model first arrived in 2020, two years after the combustion-powered XC40 hit showrooms. 

However, there has been plenty of evolution under the skin since then. A bigger battery was introduced in 2022, while the single-motor model switched from front to rear-wheel drive in 2023. That boosted efficiency, while Volvo’s latest infotainment software has also made it to the EX40.

Tester’s notes

Black Edition versions of the EX40 in Plus and Ultra trims are currently available with extra enhancements. They come in Single Motor Extended Range or Twin Motor Performance specs (currently the only way to get the latter powertrain), with Onyx Black paint, all of the car’s exterior chrome deleted (including the diagonal slash across the grille) and gloss-black 20-inch alloys.

Prices range from £55,055 for the Single Motor Plus version to £63,105 for the Ultra Black Edition in Twin Motor Performance guise. 

The EX40 is closely related to the EC40, which is another rebrand of an existing Volvo model, this time the C40 coupé-SUV. The hatchback rear end of the EC40 is designed to smooth airflow around the car, and when you compare like-for-like models, it’s clear that there are benefits to be had.

The Single Motor Extended Range EC40 in Plus trim can travel up to 346 miles on a full charge, five miles further than the EX40 in the same spec. There’s no EC40 Core, but the Plus and Ultra trims are the same price as the equivalent EX40.

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Head-to-head

On the road

Both cars deliver a comfortable ride that suits their premium status. The Volvo surprises the most, because even on larger 20-inch alloy wheels the ride remains composed. 

The Lexus is slightly more comfortable, while its 51bhp deficit to the EX40 means that it encourages you to lean into its relaxing character. The RZ’s three-stage energy recuperation is easy to adjust via the steering wheel paddles.

Tech highlights

Touchscreens are tricky to use on the move, but Lexus allows users to prioritise the most-used functions on the screen to make life easier. The screen is sharp and responds well to inputs, too.

Volvo has added its Google-based operating system to the EX40, and it’s a slick set-up. You can sync Android devices to it wirelessly, but Apple users only get a wired connection.

Price and running

Overall prices for the Lexus RZ are higher than they are for the EX40. But in the race to get buyers into EVs, the Japanese firm is currently offering discounts of £4,500 and zero per cent APR finance that should help ease the financial burden.

Volvo is offering similar discounts of £4,000 on the EX40, while zero per cent APR finance is available on higher- spec Plus and Ultra models only.

Practicality 

While the Lexus has a coupé-like profile, its dimensions are similar to the Volvo’s. A longer wheelbase boosts passenger space in the back, while the panoramic glass roof makes the cabin feel airy.

The Volvo feels more upright, but fitting a panoramic roof here cuts headroom. The boot is taller than the RZ’s but there’s a smaller floor area, while the under-floor storage isn’t as big, either.

Safety 

Both cars are packed with safety tech, although the newer Lexus features more intrusive systems that emit all sorts of warning beeps while you’re driving. Thankfully Lexus makes life easy if you want to deactivate them.

The RZ comes with Safety Sense+ as standard, which adds Lane Change Assist and a driver monitor. Similar kit is offered on the EX40, but only as an option on the entry-level Core trim.

Ownership

For many years Lexus has been a front-runner in our annual Driver Power surveys, but a 12th place in the 2024 manufacturer survey will be disappointing – although that’s still four spots ahead of Volvo.

Both these car makers offer a three-year/60,000-mile warranty as standard, but you can extend the RZ’s cover to 10 years or 100,000 miles if you get it serviced at a Lexus franchise.

Verdict 

First place: Volvo EX40

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A name change to separate the EV from the ICE XC40 hasn’t done any damage to the all-round ability of Volvo’s compact SUV. It lacks some of the most cutting-edge kit that you can get in its newer rival, but that’s offset by the extra range that its battery offers, while more competitive pricing puts it slightly ahead.

Admittedly, it’s not quite as spacious as the RZ for passengers or luggage, and high-speed refinement is slightly short of its rival’s, but the differences are small enough to be of little consequence in this stylish package.

Second place: Lexus RZ

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Adding a two-wheel-drive option to the RZ range has brought down prices and improved the car’s range, and in a lot of areas the largest Lexus EV is an appealing package. It’s a better choice than the Volvo if you frequently carry passengers, while the balance between ride comfort and handling is impressive.

There’s lots of kit on board, but the RZ gets expensive in higher specifications, while the charging speeds and total range can’t quite match the class best. However, we still think it should be on any potential buyer’s shortlist.

Prices and specs

What we would choose

Lexus RZ

Aside from paint and wheels, there aren’t any options to speak of. Urban trim is well equipped, but the top-spec Takumi is luxurious, with matrix-LED lights, 64-colour ambient lighting, a Mark Levinson stereo and more.

Volvo EX40

The Core model has all the kit you could ask for, although the £1,495 Driver Assist and £600 Climate packs are worth adding. If you can stretch to the extra £7,500, Plus trim has these and more besides as standard.