Volvo Once Planned To Go EV-Only By 2030 — Now It's Refreshing The ICE XC40 InsteadGuessing HeadlightsAndre NalinTue, September 15, 2026 at 11:00 PM UTCAdd us on GoogleImage Credit: Volvo.Not long ago, the future of Volvo's combustion-powered lineup appeared to have an expiration date. The Swedish automaker announced in 2021 that it intended to become an EV-only brand by 2030, with electric cars expected to account for half of its global sales as early as 2025.The market didn't cooperate with that timetable, and EV adoption has progressed more slowly than Volvo anticipated in several important markets, forcing the company to rethink how quickly it can leave gasoline behind.That change of direction is now influencing the cars Volvo plans to keep around. According to Automotive News, the company is extending the life of some combustion-powered models as it adjusts to slower EV demand.AdvertisementAdvertisementThe XC40 is among the first beneficiaries. Rather than being left to age alongside Volvo's growing electric lineup, the compact SUV is receiving a substantial overhaul intended to keep it competitive for years to come.Volvo's EV Targets Didn't Work OutImage Credit: Volvo.Volvo originally wanted battery-electric vehicles to represent 50% of its global sales by 2025. Instead, EVs accounted for 21.4% of its worldwide volume last year, with plug-in hybrids taking an additional share.The company still sees electrification as its long-term direction, but its previous hard deadline for eliminating combustion engines is gone. That gives established models such as the XC40 a considerably longer role to play than Volvo once envisioned.In the U.S., that strategy is particularly visible. The fully electric EX40, which shares its basic body architecture with the XC40, has been dropped from the American lineup, although Volvo will continue offering it in other markets.The XC40 Gets Its Biggest Refresh YetImage Credit: Volvo.Volvo has consequently given the XC40 its most substantial package of updates since the current generation arrived in 2018. Nearly everything at the front has been changed, including the hood, fenders, bumper, grille, and headlights.AdvertisementAdvertisementThe redesigned Thor's Hammer Matrix LED headlights feature a revised interpretation of Volvo's familiar lighting signature. New LED taillights, an updated tailgate, and a redesigned rear bumper complete the exterior changes, while fresh 18-, 19-, and 20-inch wheel designs will also be available.The interior receives a larger 11.2-inch central touchscreen running Volvo's latest user interface. Google Gemini integration brings natural-language voice interaction for tasks such as planning trips, finding destinations, and handling messages.New upholstery and trim options are also available, including Arianne Cardamom leather paired with Brown Ash wood. Black Ash and aluminum trim options join the list as Volvo tries to give the aging XC40 a more contemporary cabin.Safety Tech Gets A Major UpgradeImage Credit: Volvo.Underneath the refreshed styling is a substantially updated sensor suite. Volvo has added new front and corner radars, a new forward-facing camera, rear corner radars, 12 new ultrasonic sensors, and upgraded parking cameras.AdvertisementAdvertisementThose sensors enable features including Door Opening Alert, which can warn occupants about approaching cyclists or traffic before a door is opened. Pilot Assist gains lane-change assistance, while the available 360-degree camera now offers a 3D view.American buyers won't get additional performance, however. The revised XC40 will be offered with Volvo's B5 mild-hybrid powertrain, combining a turbocharged 2.0-liter four-cylinder with an eight-speed automatic and all-wheel drive for 247 hp.Production of the refreshed XC40 is scheduled to begin later this fall, with deliveries starting in early 2027. Pricing will be announced closer to launch.Volvo still expects its future to be electric. For now, though, the updated XC40 shows that gasoline-powered Volvos aren't disappearing nearly as quickly as the company once expected.AdvertisementAdvertisementIf you want more stories like this, follow Guessing Headlights on Yahoo so you don't miss what's coming next.