Volvo Cars is discontinuing its all-electric EX40 in the United States, instead giving its popular XC40 hybrid a major refresh for the 2028 model year. The updated XC40 is expected to reach U.S. dealerships in early 2027, as Volvo responds to changing consumer demand for electric vehicles.

The redesigned XC40 features revised exterior styling, including a new interpretation of Volvo’s distinctive “Thor’s Hammer” LED headlights, a redesigned grille, bumper, hood and front wings. At the rear, new lighting and a redesigned bumper complete the update, while new 18-, 19- and 20-inch diamond-cut wheels add further visual changes.

Inside, the XC40 receives a larger 11.2-inch touchscreen, replacing the previous nine-inch display. Volvo has also introduced an updated interface and Google Gemini voice integration, allowing drivers to handle navigation, messages and searches using natural voice commands. A new wireless phone charger and additional upholstery and trim choices further modernise the cabin.

Safety technology has also received a substantial upgrade, with new radars, cameras and ultrasonic sensors. New features include warnings for approaching cyclists before occupants open doors, automated lane-change assistance and an optional 3D/360-degree parking camera.

The U.S.-specification XC40 B5 uses a 2.0-litre turbocharged four-cylinder engine producing 247 horsepower, paired with an eight-speed automatic transmission and a mild-hybrid electric motor.

While the EX40 will continue in other markets, Volvo is reportedly looking towards the larger EX50 as its future U.S. electric crossover.