Volvo has announced significant updates for the 2028 XC40, introducing revised styling and advanced technology. However, the automaker confirmed that the all-electric EX40 will be discontinued in the United States, leaving only the internal combustion engine version available to American buyers.
The compact SUV has long been a staple of Volvo’s lineup, ranking as the brand’s third-best seller in the US and second-highest internationally. While the midsize XC60 remains the top performer domestically, the XC40 has held steady since its debut in 2017. The electric counterpart, originally launched as the XC40 Recharge in 2019, was rebranded as the EX40 in 2024 to align with Volvo’s broader electric naming convention, which also includes the EX30, EX60, and EX90.
For the 2028 model year, both the gas-powered XC40 and the electric EX40 receive substantial visual overhauls. The front end sheds its previous complex, scalloped bumper design in favor of a cleaner, more modern aesthetic. Volvo’s signature Thor’s hammer headlights remain, but surrounding lighting elements are now concealed for a starker look. The hood and fenders have also been resculpted, and the rear features matching design cues. While the body shape remains largely unchanged, the updates create a noticeably fresher appearance in daylight.
Outside observers can distinguish the two models primarily by their grilles. The EX40 retains a flat, body-colored panel, whereas the XC40 features diagonal slashes designed to highlight the Volvo emblem and its iconic upward-right arrow. Inside, both vehicles sport a new, larger 11.2-inch display, an increase from the previous 9-inch screen. Unlike the older recessed unit, the new screen sits prominently atop the dashboard. It runs the latest Android Automotive software, featuring Google’s Gemini AI assistant for handling vehicle settings, infotainment, and queries ranging from restaurant searches to dietary information.
Safety systems have also been enhanced with a upgraded sensing suite, including high-resolution cameras, ultrasonic sensors, and updated radar. These improvements enable a detailed 3D vehicle view previously reserved for larger Volvo models and allow Pilot Assist to offer automated lane-change capabilities. The system is managed by a more powerful, over-the-air updatable central safety controller, paving the way for future driver-assistance features. However, CEO Håkan Samuelsson has reiterated that Volvo is not prioritizing hands-off driving technologies similar to those offered by BMW or Tesla.
Despite the global updates, US customers will not see the refreshed EX40. Volvo will only offer the 2028 XC40 in B5 trim, equipped with a 2.0-liter turbocharged four-cylinder engine producing 247 horsepower and 266 pound-feet of torque. Paired with an eight-speed automatic transmission and a mild-hybrid electric motor, the vehicle achieves an estimated 27 mpg combined. The decision to drop the electric version in America is attributed to sluggish sales figures and the fact that the EX40 is manufactured overseas. This follows the recent departure of the smaller EX30 from the US market as well.
While the EX40 will continue to be sold internationally, its US production effectively ends once current inventory is depleted. The updated 2028 XC40 is expected to reach dealerships in early next year, though specific pricing details have not yet been released.
Sluggish sales might be due to the price, not lack of interest. Let’s see what the B5 costs before we celebrate its demise.
Wait, so I can’t get the updated styling on the electric model? That seems like a strange decision to bifurcate the line like this.
Great news on the tech upgrades, especially that larger screen. But dropping the EX40 feels like a massive step backward for EV adoption.
Honestly, 27 mpg combined isn’t terrible for a compact SUV. Maybe this is the right call for American buyers anyway.
I can’t believe they’re killing the electric version here. The charging infrastructure is growing, but Volvo just gives up?