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Volvo XC40 and EX40 updated: new look, new tech for popular luxury small SUV

 

Styling upgrades and new tech equip Swedish luxury small SUV for fight with X1, GLA and Q3


The Volvo XC40 – the Swedish brand’s biggest-selling model in Australia – has been given its first major styling update, eight years after going on sale.

The Volvo XC40 has been a successful challenger to the Audi Q3, BMW X1, and Mercedes-Benz GLA since launching globally in 2017 – or 2018 locally.

A second-generation model would typically have been expected by now, though the Swedish brand has instead chosen to give its luxury compact SUV a significantly styling and tech update.

Local timing for the updated XC40’s arrival has yet to be confirmed.

Volvo XC40 range (electric EX40 shown here) adopts new front end for 2027

The New Look

Starting at the front, the XC40 – and its electric version, the EX40 – adopt redesigned headlights, including a straightened version of the company’s signature ‘Thor’s Hammer’ LED lighting.

A new grille shape – again blanked off for the EX40 – is complement by a simpler bumper for a cleaner overall front end.

There’s no change to the profile except for a range of new alloy wheels, offering from 18 to 20 inches in size.

An all-new, sharper-looking rear features a heavily revised tailgate and revised bumper design. Hockey-stick-style tail-lights remain but the LED lighting is noticeably straighter and sharper than before.

2027 Volvo EX40 interior with enlarged centre touchscreen

The Updated Cabin

The most obvious change to the XC40/EX40 interior is a larger, 11.2-inch central touchscreen.

The Google-based operating system now features Gemini AI Assistance, which Volvo says allows for “natural conversations”.

There’s also a new leather upholstery option for the 40-series Volvo that had previously focused on seats made from sustainable, leather-free materials.

Additional safety technology is also added, with upgraded/new cameras, radars and sensors.

Volvo EX40 (pictured above) and XC40 also gains heavily revised rear styling

The Powertrains

Everything carries over under the bonnet, with the XC40 continuing with mild-hybrid petrol engines and the fully electric EX40 offering a range of up to 575km.

In Australia, the Volvo XC40 is currently priced from $55,490 before on-road costs, while the EX40 starts from $69,990 before on-road costs.

Volvo Australia axed the related coupe-style, electric EC40 in 2025 due to slow sales, though the model continues in Europe.