- The XC40 small SUV is refreshed with new ends and a new interior for the 2028 model year.
- The EX40 electric variant will stay on sale as a 2026 model, but it will not return as a redesigned 2028 model, for now.
Volvo shook up its small SUV lineup on Thursday by debuting a refreshed 2028 XC40 and a new EX40 electric variant. Both the current XC40 and EX40 will have long runs as 2026 models, but the EX40 will not return to the U.S. for the 2028 model year, Volvo confirmed.
“We always evaluate the needs of our customers when determining our product mix and believe we have a strong lineup of EV SUVs that meets the needs of U.S. drivers,” Thomas McIntyre Schultz, Volvo’s Product and Technology Communications Lead, told KBB.com via email. “At the moment, the EX60 P6 represents the new entry point for Volvo EV SUVs, with a very competitive starting MSRP of $59,795, versus the outgoing EX40’s $56,545, while providing more of the space and range that U.S. customers demand.”
Flagging electric vehicle (EV) sales in the U.S. as well as prohibitive tariffs on imported autos have created an unfavorable sales landscape for electric vehicles, especially for entry-level cars. Earlier this year, Volvo discontinued the EX30 subcompact electric SUV after less than two years; it was planned to start at about $35,000, but that was based on its production in China.
In 2024, the Biden administration enacted significant tariffs on Chinese EVs, though Volvo had an exception as long as it eventually moved production to South Carolina. That plant makes the EX90 3-row SUV, which is an electric equivalent of the popular XC90. Volvo shifted production of the EX30 to Ghent, Belgium, where the XC40 is also made. Tariffs under the Trump administration resulted in an EX30 starting price of about $46,000.
What Happened to Volvo’s All-Electric Plan?
Much has changed since Volvo in 2021 pledged to go all-electric by 2030. The federal EV tax credit of $7,500 expired last year, and other automakers have scaled back their EV ambitions. Honda canceled its plans for the 0 Series SUV and Saloon, and pulled the plug on the short-lived Acura ZDX and Honda Prologue. Nissan killed the Ariya, Hyundai axed the Ioniq 6, and the Kia EV4 and Volkswagen ID.7 never made it to U.S. shores. Toyota delayed plans for the Highlander EV.
Yet, elsewhere in the world, EV sales hit a record high in the first half of 2026. Based on high oil prices attributable in part to the Iran war, the International Energy Agency (IEA) forecasted that 29% of all new car sales will be EVs by the end of 2026.
Why Volvo Skipped the 2027 XC40 Model Year
As for Volvo skipping the 2027 model year on the Volvo XC40, it’s not uncommon. Kia skipped the 2026 model year for the redesigned 2027 Kia Telluride. The Acura MDX skipped the 2021 model year before the redesigned version launched for 2022. Jeep discontinued the Cherokee for the 2024 and 2025 model years, then resurrected the 2026 Jeep Cherokee as a bigger, bolder, hybrid SUV.
The difference with Volvo is that the XC40 is refreshed, not redesigned. It has the same powertrain and chassis, but a new skin and updated interior. The 2028 XC40 will mark the ninth year of the first-generation XC40, which is a long time in the automotive world.
