COE premiums may have hit a new high, but I think the appeal of the two cars we have gathered here today won't take too much of a hit.

To start, they both are premium vehicles, which to many, deliver greater value in a high-COE environment. Then there's also the fact that petrol prices are still holding strong, helping to keep the relative running cost of these two electric vehicles low.

But which is the better pick?

Different looks

Both vehicles take a very different approach design-wise. The Volvo XC40 Recharge looks practically similar to its petrol-powered equivalent (closed-off front grille aside), which is no negative thing - the petrol-powered variants of the XC40 look smart to begin with. 

In contrast, the Mercedes-Benz EQA gets a different grille, head lights, and taillights from the GLA - upgrades that add quite a touch of muscularity to the shell of the crossover.

Familiar cabin

The cabin of the Volvo is a more straightforward and easy-to-use space. The car turns on the moment you're seated - there's no start/stop button here. There are a few accent pieces that sport an interesting geometric pattern on the dashboard and door cards, and a sunroof adds to the general sense of space, but otherwise the interior is a mix of greys and blacks.

The Mercedes-Benz EQA, in contrast, is decidedly lavish. Puddle lighting here takes the form of a great Mercedes star, and once you step into the cabin and press that engine start button, the colours offered by the twin 10.25-inch MBUX screens at the top, its ambient lighting system, and those back-lit turbine vents all vie for your attention.

The Volvo counters the extravagance of the EQA with build quality that just feels a league above, and rear passengers will also find more knee room available in the XC40. Those seated in the back of the EQA will also find the rear seats not as comfortable: The seat bases are not high enough from the floor so taller passengers will find themselves sitting in a near half-squat position.

Alternative drive

This no-frills strategy of the interior XC40 Recharge also applies to its drive: There's no paddle shifters mounted on the steering column - you simply get the option to turn one-pedal driving on or off in the infotainment screen. And there's no drive modes to select from in this Volvo either.

Don't let this lack of options put you off, however. As it is, the XC40 Recharge is an outright pleasure to pilot. There's reassuring weight to the steering and pedals, and the suspension setup here, while a little stiffer than in the EQA, also does a better job of arresting unwanted body movement.

Step out of the XC40 Recharge and into the EQA, and you're greeted by much firmer seats (the 'AMG Line' car comes with sport seats as standard). Driven at the sort of half-throttle work most will do around town, the lighter weight of the accelerator pedal, as well as a more eager throttle response, make the Mercedes-Benz EQA feel nimbler and just a touch more agile, negating the fact that it is 39bhp short on the Volvo XC40.

Inner-city driving is also well-dispatched in the EQA thanks to the ability to quickly alter the level of regenerative braking via the column-mounted paddles. However, on more flowing roads, it feels less resolved than the Volvo, transmitting quite a bit of road imperfections into the cabin.

High prices

At $345,888, the Mercedes-Benz EQA in the 'AMG Line' trim that we test here is asking for a sizeable extra over the $275,000 that the Volvo XC40 Recharge can be had for. Even if you do decide that you don't need that AMG exterior, AMG floormats, or Nappa leather on the steering wheel (amongst other features), the EQA in 'Progressive' trim at $326,888 is still asking for a sizeable premium ahead of the Volvo (all prices as of Aug 18, 2023).

Even so, the greater brand appeal associated with the EQA as well as its posh cabin should allow it to find plenty of traction here in Singapore.

But those that pick the Volvo can take heart in the fact that its no-nonsense approach to driving and high road manners also give it an attraction all of its own. And with the sizeable price difference, you'll also be able to take comfort in the fact that you're getting quite a bit of value - the perfect consolation for all those that need to buy a car when COE premiums are at an all-time high. 

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This article was first published in sgCarMart.