Volvo’s Electric Compact EX40 SUV Canceled as Sales Continue to Fall

• Volvo has officially canceled the EX40 electric compact luxury SUV, the automaker confirmed to Car and Driver.
• The EX40 nameplate was only around for two model years, though the model existed for four additional years as the XC40 Recharge.
• The cancellation comes as the EX40’s sales numbers are dwarfed by the gas-powered XC40, which Volvo just updated for the 2028 model year.

It’s time to bid farewell to Volvo’s little EX40 electric compact luxury SUV. The automaker confirmed to Car and Driver that the 2026 model was the final version being sold in the United States.

The decision to kill the compact electric model isn’t a huge surprise, given that the EX40’s sales have been dwarfed by those of its nearly identical gas-sipping twin, the XC40. Volvo just awarded the gasser with another refresh, which will relaunch for the 2028 model year.

While the EX40 name only existed for the 2025 and 2026 model years, the vehicle was sold under the XC40 Recharge nameplate from 2021 through 2024. Entry models came equipped with a rear-mounted electric motor that produced 248 horsepower, while the more expensive dual-motor variants earned all-wheel drive and 402 horsepower.

Despite never being a huge sales winner, we appreciated the EX40’s dual nature. It offered genuine Scandinavian luxury, and the dual-motor versions knew how to boogie when you applied the pressure. Thankfully, a replacement is rumored to be on the way, but it will wear the name EX50. Reports have it arriving in the fall of 2027, likely as a 2028 model. The EX50 is expected to be slightly longer and taller than the EX40. It will ride on Volvo’s new SPA3 platform, and despite its larger footprint, it should be considerably cheaper, with a roughly $40,000 starting price.

➡️ Skip the lot. Let Car and Driver help you find your next car.

Jack Fitzgerald’s love for cars stems from his as yet unshakable addiction to Formula 1.
After a brief stint as a detailer for a local dealership group in college, he knew he needed a more permanent way to drive all the new cars he couldn’t afford and decided to pursue a career in auto writing. By hounding his college professors at the University of Wisconsin-Milwaukee, he was able to travel Wisconsin seeking out stories in the auto world before landing his dream job at Car and Driver. His new goal is to delay the inevitable demise of his 2010 Volkswagen Golf.