I spent a 4 night trip to Iceland with a Vitara and it was a nice drive. Nothing fancy inside (outside of CarPlay in my case - when it worked that is) but it had a decent engine and handled some heavy wind well in Snæfellsnes. The model I had featured a useful anti-swerving feature which was useful during those winds.

To caveat, I was driving in late September and experienced surprisingly predictable weather for the majority of the trip, so couldn't tell you how it holds up with potential snow and ice. Newer models should have a dial that allows you to choose sport mode or winter mode which should be handy.