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

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. [Image: https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/The_New_Volvo_XC40_Studio_Back.jpg?quality=90&strip=all] [Image: https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/The_New_Volvo_XC40_Studio_Front_Trim.jpg?quality=90&strip=all] [Image: https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/The_New_Volvo_XC40_Studio_Front.jpg?quality=90&strip=all] [Image: https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/The_New_Volvo_XC40_Studio_Head_Light.jpg?quality=90&strip=all] [Image: https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/The_New_Volvo_XC40_Studio_Model_Badge.jpg?quality=90&strip=all] [Image: https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/The_New_Volvo_XC40_Studio_Profile.jpg?quality=90&strip=all] [Image: https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/The_New_Volvo_XC40_Studio_Rear.jpg?quality=90&strip=all] But the interior is where the meat of Volvo’s improvements comes through. The screen has been bumped up to a higher resolution and a larger, 11.2-inch size. It will run Volvo’s latest user interface, which the automaker designed for faster navigation with fewer taps. Google’s Gemini serves as the voice assistant, using its big AI brain to plan routes, find specific locations and detours, and manage messages. The XC40 rounds it out with an improved wireless phone charger and smart storage solutions. What about safety? This is a Volvo after all, the automaker most committed to Safety (at least according to its well-cultivated reputation). Don’t worry, the XC40 ups the ante in that department with a new software and sensor platform that’s designed to provide real-time collision avoidance, automated emergency steering, and automatic emergency braking. The sensor upgrade includes new front and corner radars, a new front camera, new rear corner radars, 12 new ultrasonic sensors, and new parking cameras. Cloaked in this new sensor suite, the XC40 is getting a host of new safety capabilities, including new door opening alerts that warn occupants before dooring passing cyclists, lane change assist and smoother lane following support on long drives, and an optional 3D/360-degree camera to simplify low-speed maneuvering and parking. [Image: https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/The_New_Volvo_XC40_Studio_Centre_Console.jpg?quality=90&strip=all] [Image: https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/The_New_Volvo_XC40_Studio_Door_Panel.jpg?quality=90&strip=all] [Image: https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/The_New_Volvo_XC40_Studio_Drivers_Dash_Screen.jpg?quality=90&strip=all] [Image: https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/The_New_Volvo_XC40_Studio_Pano_Roof.jpg?quality=90&strip=all] The ultimate goal is to build a better XC40 — one that’s safer and more capable, which hopefully translates to better sales numbers and a long, continuous shelf life for Volvo’s tiny SUV. “By enhancing the XC40’s design, technology and safety features, we’ve created the best version of the XC40 yet,” says Akhil Krishnan, Interim Lead for the 30 and 40 Series at Volvo Cars, in a statement. “This already popular model is now set to continue being one of our best-selling cars for years to come.” Images by Volvo Correction September 10th: A previous version of this story described the new XC40 as a plug-in hybrid. It is a mild hybrid. Update September 10th: Updated to include information about the canceling of the EX40.