The Best Subcompact Luxury SUVs in 2024

Subcompact luxury SUVs are key players in the Canadian market. The team at The Car Guide has analyzed all the various models available in 2024 and identified the best buys in the segment for Canadian drivers.

Just like they do with compact luxury cars, Audi and BMW lead the way, but can you guess which brand is sitting in third place? Scroll down to find the answer.

1. Audi Q3

Photo: Audi

Audi’s lovely subcompact luxury crossover is a sales leader in Canada. And that’s despite offering limited engine selection. In fact, the Q3 relies exclusively on a turbocharged 2.0-litre four-cylinder engine and eight-speed automatic transmission, though with two different output levels to choose from—184 horsepower or 228 horsepower. Sure, fuel economy could be better, but since regular gas will suffice you won’t pay too much money at the pump.

Q3 drivers typically rave about its outstanding driving dynamics and remarkable fit and finish inside. Material selection is commendable, and there’s adequate space for four adults. Additionally, the cargo area is larger than that of many rivals.

2. BMW X1

Photo: BMW

Completely redesigned a year ago, the X1 gained a new model for 2024. Joining the fuel-efficient xDrive28i (241 horsepower) is the racier M35i xDrive, which boasts the German brand’s most potent four-cylinder engine ever (312 horsepower) along with sharper styling. That’s fantastic.

Driving dynamics are particularly impressive for a small luxury crossover. The X1 is based on the same platform as BMW’s compact sedans and coupes. The sporty-shifting, dual-clutch transmission works great. Ditto for the xDrive all-wheel drive system. Now, can you resist the many expensive options?

3. Volvo XC40

Photo: Dominic Boucher

Here, we’re talking about the conventionally powered XC40, the one with a turbocharged 2.0-litre four-cylinder (247 horsepower) featuring mild hybrid technology and standard all-wheel drive, not the fully electric XC40 Recharge. In terms of styling, this little Swedish crossover shows no wrinkles even though it originally launched for 2019. We also like how it stands out from other competitors with more generic looks.

The minimalist interior is attractive and tastefully appointed, while ride quality proves excellent. The XC40 can be fun, too. However, some drivers won’t like the infotainment system or the lingering concerns about reliability.

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