Volvo XC90 wins Best Luxury SUV Under $150K

The Volvo XC90 has won the 2026 Drive Car of the Year Best Luxury SUV Under $150K, narrowly beating out the BMW iX and Porsche Macan.

When looking for a luxury SUV, performance, practicality, and prestige need to be considered in equal measure – which is something the Volvo XC90 has balanced almost flawlessly, especially in the top-spec Ultra T8 PHEV Dark form.

The model that gave the XC90 the biggest run for its money was the BMW iX, which was updated last year to offer more potent performance from its dual electric motors, and a longer driving range thanks to a bigger battery.

While the iX certainly delivered on the three key pillars of the category, the XC90 ultimately offered a better balance of performance, practicality, and prestige.

Likewise, the Porsche Macan – which won the category last year – is arguably the better performing, more fun-to-drive model, but cannot quite match the Volvo for ride refinement, comfort, and day-to-day liveability.

Drive's pick: XC90 Ultra T8 PHEV Dark priced from $130,990 plus on-road costs.

One of the most subjective elements of this category, the Volvo XC90 needed to be as high-class as it is practical, dynamic, and feature-laden.

Does Volvo, a Swedish marque, carry the same status as the German BMW or Porsche? In this instance, and in this category with these models, the judges have said yes.

The minimalist, pared-back design of the XC90 helps here too, which the judges expect to age exceptionally well, while the interior and cabin has enough features without being gimmicky.

Fitted with a 2.0-litre twin-charged petrol engine augmented by a single electric motor, the XC90 Ultra T8 PHEV Dark outputs a gargantuan 340kW/709Nm to all four wheels – handily ticking the box for performance.

As for practicality, well a large SUV with three rows of seating means the XC90 is the largest and most useable of the three finalists in this category, and as the only non-fully-electric model, also means it is the most convenient for extended road trips.

Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.

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