Volvo has confirmed that, from the 2028 model year, the plug-in hybrid XC40 will be sold in the US without its all-electric sibling, the EX40, which is being dropped from that market. The change accompanies a broader refresh of the compact SUV pairing, covering exterior styling, cabin technology and safety systems, and marks a notable shift given the XC40 is Volvo's third-best-selling model in America and second-best globally.

Both the XC40 and EX40 gain a simplified, more modern front end with revised headlights and reshaped bonnet and fenders, leaving the two nearly identical apart from grille detailing and badging. Inside, a larger 11.2-inch infotainment screen (up from 9 inches) sits atop the dashboard, running the latest Android Automotive software with Google's Gemini AI assistant, which can adjust vehicle settings, suggest scenic routes and find nearby restaurants with dietary details. The current XC40 generation dates to 2017, with the electric version launched in 2019 as the XC40 Recharge before being renamed EX40 in 2024 to align with Volvo's EX30, EX60 and EX90 electric range; Gemini itself was already rolled out across most Volvo models earlier this year.