Volvo Kills the EX40 as Electric Compact SUV Sales SlideAutoGuide.comMarcus LewinskyFri, September 11, 2026 at 3:43 PM UTCAdd us on GoogleVolvo has canceled the EX40 electric compact luxury SUV. The automaker confirmed that the 2026 model year was the last version offered in the United States.volvo kills the ex40 as electric compact suv sales slideThe decision arrives as the EX40's sales continue to trail those of its gas-powered near-twin, the XC40, which Volvo just refreshed for a 2028 relaunch. That contrast underscored the economics behind the move. As a result, the electric variant was consistently outsold by the internal-combustion model it closely resembles.The EX40 nameplate was short-lived, spanning only the 2025 and 2026 model years. The vehicle itself lasted longer, however, sold from 2021 through 2024 under the XC40 Recharge badge. Across both names, entry-level cars used a rear-mounted electric motor producing 248 horsepower, while pricier dual-motor variants added all-wheel drive and 402 horsepower.AdvertisementAdvertisementVolvo's decision to end the EX40 while awarding the XC40 another facelift signals where the automaker sees demand in the compact segment. The refreshed gas model returns for the 2028 model year. The identical electric version, in contrast, gets left behind.volvo kills the ex40 as electric compact suv sales slideA replacement is reportedly on the way, though it will not carry the EX40 name. Reports indicate the EX50 will arrive in the fall of 2027, likely as a 2028 model. The new SUV is expected to be slightly longer and taller than the EX40, riding on Volvo's new SPA3 platform.Despite the larger footprint, the EX50 should come in considerably cheaper, with a starting price around $40,000. That positioning would place the next electric compact well below where the EX40 sat. Therefore, it addresses one of the barriers that kept the outgoing model from gaining traction against its gas counterpart.The EX40 was never a strong seller. It delivered genuine Scandinavian luxury, however, and the dual-motor versions offered real performance when pushed. Its cancellation removes one of the smaller entries in Volvo's electric lineup at a time when the brand is recalibrating its EV strategy around a lower price point and a fresh platform.AdvertisementAdvertisementFor now, buyers looking at the compact electric Volvo will have to wait for the EX50. The EX40 bows out after only two model years under its own name.Become an AutoGuide insider. Get the latest from the automotive world first by subscribing to our newsletterhere.
+46 others
