The XC40 is technically not Volvo’s cheapest model in the US — the EX30 undercuts it by roughly $1,000 — but it remains the brand’s most affordable gas-powered SUV and its third-best-selling nameplate here, a track record stretching back to 2018. A refresh for 2027 was overdue, and Volvo has delivered a fairly conservative one rather than a full redesign.
The Changes Are Modest, By Design

Volvo
Exterior updates on Volvo’s XC40 center on new “Thor’s Hammer” LED headlight graphics that now stretch from the fascia’s edges into the grille, a resculpted tailgate with more pronounced horizontal creases, and a tweaked brake light graphic. Inside, the infotainment screen grows from 9 to 11.2 inches and now protrudes from the dash rather than sitting flush within it, still running Google-based software with Gemini added for better natural-language requests. The bigger news is on the safety side: Volvo overhauled the XC40’s entire sensor suite to match the rest of its lineup, replacing the front and rear radars, front camera, and parking cameras, while adding 12 new ultrasonic sensors — enough new hardware to enable a Door Opening Alert feature, a proper 3D 360-degree camera view, and a Pilot Assist system now capable of handling lane changes on its own.

Volvo
What’s Missing Says More Than What’s In It
Volvo’s press release covering all of this never once mentions the EX40, the all-electric version of the XC40 formerly sold as the XC40 Recharge. That omission lines up with an Automotive News report claiming the EX40 won’t return, and Autoblog’s own reporting confirms why: Volvo’s already planning a replacement, the EX50, arriving in fall 2027 and built on the newer SPA3 platform shared with the EX60 rather than the aging CMA platform underpinning both the current EX40 and gas XC40.

Volvo
A Bigger, Cheaper Replacement Is Already Planned
The EX50 is expected to price in the high-$40,000 range, undercutting the current EX40’s $56,545 starting point by a wide margin, while likely beating its 296-mile maximum range thanks to the SPA3 platform’s 800-volt electrical architecture. It’s a sensible move for a brand that’s posted steep US sales declines this year and is leaning hard on newer, more efficient platforms to turn that around. Volvo hasn’t announced 2027 XC40 pricing yet — the outgoing 2026 model starts at $41,295 delivered — with the refreshed version reaching customers in early 2027, powered by the same 2.0-liter mild hybrid turbo-four making 197 hp in front-drive form or 247 hp with all-wheel drive.