Volvo is reviving the plug-in hybrid version of its XC40 compact SUV, roughly three years after discontinuing it, alongside a significant facelift. Due at dealerships in early 2026, the refreshed model gets new exterior styling, a redesigned interior with Google's Gemini AI assistant, a larger infotainment screen and an updated suite of safety sensors. The relaunch reflects Volvo's retreat from its earlier pledge to sell only electric vehicles by 2030, positioning the PHEV as a bridge for buyers not yet ready to go fully electric, though the brand has yet to disclose powertrain, range or battery details.

Visually, the XC40 gains reworked "Thor's Hammer" LED headlights, a new grille, bumpers, bonnet and front wings, plus new rear lighting and tailgate design, with diamond-cut wheels available in 18, 19 and 20 inches. Inside, the infotainment display grows to 11.2 inches with higher resolution and a redesigned interface, while Gemini handles route planning, navigation and messages. Safety upgrades include new front, corner and rear radars, a new front camera, 12 additional ultrasonic sensors and new parking cameras, enabling features such as cyclist-dooring alerts, lane change assist and an optional 360-degree parking camera.