Volvo XC40 PHEV is back with a new look, better sensors, and Gemini AI

The compact EX40 struggled to find customers. But the hybrid version of Volvo’s small XC40 SUV is getting a facelift.


Today, Volvo said it was canceling the entry-level electric EX40 in the US, while also giving its aging hybrid XC40 a new look. When it arrives at dealerships early next year, the new XC40 will have updated exterior styling, a gut-renovated interior featuring Google’s Gemini AI assistant, enlarged infotainment screen, and a new sensor-and-software safety suite.
Volvo is expected to replace the EX40 with the slightly larger EX50, riding on the automaker’s lower-cost SPA3 platform. The EV should reach US dealerships by mid-2027, and will likely start in the high-$40,000 range, according to Automotive News .
As a hybrid, the XC40 serves as a bridge for customers who want better gas mileage but aren’t ready for the pure EV lifestyle. Volvo itself needs that bridge, after backing down from its pledge to sell only EVs by 2030. That said, the automaker didn’t divulge any details about the powertrain, engine options, electric motor, range, or battery capacity for the XC40 — so we’ll have to wait and see whether this SUV can sufficiently compete in an increasingly cutthroat hybrid market .
On the surface, we’ve got a new take on Volvo’s signature “Thor’s Hammer” LED headlights, as well as an updated front grille, bumper, hood and front wings. Same goes for the rear: new lighting, new bumper, and an upgraded tailgate. Additionally, the XC40 is getting a trio of diamond-cut wheel options, available in 18-, 19-, and 20-inch sizes.






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