Volvo has confirmed it will discontinue sales of its entry-level electric vehicle, the EX40, in the United States, while simultaneously unveiling a refreshed 2028 model year for its hybrid SUV, the XC40. The departure of the all-electric EX40 is expected to be filled by the larger and more affordable EX50, which will be built on the SPA3 platform and carry a starting price near the $50,000 mark, which translates to roughly 336,000 yuan. This new model is scheduled to arrive at American dealerships in the autumn of 2027.
The EX40, which was previously known as the XC40 Recharge before being rebranded as a standalone electric vehicle in 2024, currently starts at around $55,000, or about 370,000 yuan, in the U.S. market. Back in March, Volvo had already announced the discontinuation of the smaller EX30 in the United States, with the 2026 model year exiting the market later this year, a move driven by pricing pressures, tariff concerns, and technical issues.
The 2028 XC40 is set to hit American dealerships early next year with a host of exterior updates. The iconic "Thor's Hammer" LED headlights have been redesigned, and the front grille, front bumper, hood, and front fenders have all been refreshed. The rear of the vehicle features new taillights and a new bumper. Wheel options include 18-inch, 19-inch, and 20-inch variants, all sporting a diamond-cut finish.
The current 2026 XC40, which starts at $41,295, or roughly 278,000 yuan, is powered by a 2.0-liter turbocharged engine paired with a 48-volt mild-hybrid system, mated to an eight-speed transmission. However, the most significant changes for this facelift are found inside the cabin. The center touchscreen has grown to 11.2 inches, and the latest infotainment interface has streamlined operations to help drivers access functions more quickly. The voice assistant is now powered by Google's Gemini, which uses artificial intelligence to plan routes, locate specific destinations, suggest detours, and manage messages.
Safety has also seen a substantial upgrade. A new software and sensor platform enables real-time collision avoidance, automatic emergency steering, and automatic emergency braking. The vehicle now features updated front and corner radars, a forward-facing camera, rear corner radars, and parking cameras, along with 12 new ultrasonic sensors. This hardware suite introduces several new functions, including door-opening warning, lane-change assist, and smoother lane-keeping assistance. Customers can also opt for a 3D/360-degree surround-view camera system to aid in low-speed maneuvers and parking.
Looking at the broader product strategy, Volvo's all-electric lineup in the U.S. is undergoing consolidation. With the EX30 and EX40 being phased out, the remaining electric offerings will consist of the SPA3-based EX60 and the upcoming EX50.