Volvo Updates the Gas XC40 and Quietly Kills Its Cheapest EV
A new face, an 11.2-inch screen, and a full sensor refresh for the gas XC40 — while Volvo's U.S. press office confirms the electric EX40 is done and the EX60 takes over as the entry EV at $59,795.
Volvo has given the XC40 its biggest update since the small SUV launched in 2017: a new front end, a larger screen with Google's Gemini assistant, and a fresh sensor suite behind an expanded driver-assist package. The same morning, Volvo's U.S. press office confirmed to Motor1 that the electric EX40 is on its way out, leaving the larger EX60 as the brand's cheapest EV in America at $59,795.
Read together, the two halves of the briefing say one thing: the gas XC40 stays and gets better, the electric version of the same car does not, and the price of entry to a Volvo EV rises by $3,250.
What changes on the XC40
The exterior gets Volvo's current design language. Up front are redesigned Thor's Hammer Matrix LED headlights, a new grille, and a new bumper, hood, and front fenders. At the back are new LED taillights, a revised tailgate, and a new bumper, plus diamond-cut wheels in 18-, 19-, and 20-inch sizes. Volvo calls it an update, and that's what it is: the car underneath is the same first-generation XC40.
Inside, the 9-inch center screen gives way to an 11.2-inch unit running Volvo's latest interface, which the company says needs fewer taps to reach common functions. Google Gemini takes over voice control, and there's a new wireless charger, revised cabin lighting, and, for the first time on the XC40, Arianne Cardamom leather paired with Brown Ash wood trim. Black Ash and aluminum remain on the options list.
The safety hardware is where the money went. Volvo says the updated car gets new front and corner radars, a new front camera, rear corner radars, 12 ultrasonic sensors, and new parking cameras, all running on a new software platform. That enables automatic emergency steering alongside emergency braking, a Door Opening Alert that warns before someone opens a door into a passing cyclist, an optional Pilot Assist that now includes lane-change assist, and a 3D view for the optional 360-degree camera. Over-the-air updates will add features later.
"By enhancing the XC40's design, technology and safety features, we've created the best version of the XC40 yet," said Akhil Krishnan, interim lead for Volvo's 30 and 40 Series.
Production starts this fall, with U.S. deliveries expected in early 2027, according to Volvo Car USA's announcement. The release doesn't name a model year or a price, and it says nothing about what's under the hood. Motor1 and other outlets briefed at the launch report the car will arrive as a 2028 model with a single powertrain for the U.S.: the 247-hp B5 mild-hybrid 2.0-liter turbo with all-wheel drive. If that holds, the front-drive B4 that opens the current range at $41,295 including destination goes away. None of it is in Volvo's official material yet.
The EX40 exits, and the entry price rises
The electric side of the story didn't get a press release. A Volvo spokesperson told Motor1 at the launch that the EX60 P6 is now the entry point to the brand's electric SUVs, at $59,795 versus $56,545 for the outgoing EX40, and that the EX60 offers more of the space and range U.S. buyers ask for. Motor1 reports EX40 production ends after the 2027 model year, with no electric version of the refreshed XC40 planned for the U.S.
On paper the trade is reasonable. Volvo's EPA figures give the EX60 P6 up to 307 miles of range and the P10 AWD up to 330, against 296 miles for the best EX40. The EX60 also rides on the new SPA3 platform with an 800-volt system and a native NACS port. But $59,795 is a different tier from the $41,295 the gas XC40 starts at today, and the gap below it is empty: the EX30, Volvo's smallest and cheapest EV, was pulled from the U.S. in March.
The timing tracks Volvo's own numbers. In its second-quarter report, Volvo Car USA said sales of fully electric and plug-in hybrid models fell 17.1 percent year over year and pointed to a slower-than-expected recovery after federal incentives ended. The XC40 has had a rough year too: first-quarter U.S. sales of 3,403 were down 47 percent, according to Volvo's figures as reported by Autoblog.
Something smaller may come back. Volvo told Jalopnik a small electric SUV replacement for the U.S. is in the works, and Automotive News has reported it as an SPA3-based EX50 due in fall 2027. Volvo hasn't confirmed the name or the date.
What's still open: U.S. pricing for the refreshed XC40, official confirmation of the model year and powertrain outputs, the exact date EX40 production stops, and what happens to orders already placed. Volvo hasn't addressed any of those yet; we'll update when it does.
