2028 Volvo XC40 Preview: Big Changes to Volvo’s Smallest SUV

LONDON — The XC40 might be the smallest member of Volvo’s SUV family in the U.S, but it’s in no way starving for attention with its 2028 refresh. With sleek new lighting, an updated exterior design, new technology and, of course, updated safety tech, the XC40 continues to be a compelling choice among small luxury SUVs. The changes are more comprehensive than we often see in a simple “mid-cycle refresh,” where automakers make small tweaks to keep vehicles up to date.

Though it doesn’t sell at the volume of the XC60 or XC90, the XC40 is a critical part of Volvo’s U.S. product lineup, as it acts as the luxury automaker’s entry-level model, bringing new customers into the brand. Unlike some luxury brands, such as Lexus, Volvo doesn’t have a mainstream brand from which to upgrade customers. It’s also a tough neighborhood to compete in, with strong rivals including the BMW X1, Mercedes-Benz GLA and the impressively redesigned Audi Q3.

Key Takeaways:

Volvo hosted U.S. News for the London debut of the new XC40, along with the 2028 Volvo XC60, which receives similar updates, plus more than double the range for its plug-in hybrid model.

Set to arrive in early 2027, the 2028 Volvo XC40 (they’re skipping the 2027 model year) takes on a smoother, more modern stance. It's led by an updated grille and a new take on Volvo’s signature Thor’s Hammer running lights, which now appear as two solid, blocky lighting segments, rather than a pair of thin strips. They’re not as techy as the customizable running lights on Audi’s new Q3, but I think they’re equally as elegant.

New front and rear fascias give it a blockier, more formal look than the sportier motif of the last generation. The XC40 is the gas-powered sibling to the electric Volvo EX40, which will not return to the U.S. market for 2027. Instead, an all-new and larger EX50 model is expected to arrive in late 2027. But elements of the EX40’s design, including its sculpted doors, have filtered into the new XC40.

Volvo has not released updated pricing for the new XC40, which had a $39,900 starting price for 2026. Given the changes outlined below, we’d expect a starting price of $43,000 or so for the 2028 model, though its overseas production could create pricing volatility due to changing tariffs.

Simplified Lineup

For the 2028 XC40, Volvo has dropped the 194-horsepower mild-hybrid base engine from the 2026 model and will fit every XC40 with the turbocharged 2.0-liter four-cylinder mild-hybrid that was optional for 2026. It makes 247 horsepower and 258 pound-feet of torque, and it’s paired with an eight-speed automatic and all-wheel drive. Volvo estimates a 6.3-second sprint from 0-60 mph, which is neither slow nor exceptionally quick.

The subcompact Volvo SUV requires premium unleaded fuel, while the redesigned 2027 Audi Q3 runs on regular, which represents a massive savings over the life of the vehicle if you rack up the miles.

From our previous experience with the powertrain, we’ve seen that it’s a competent performer, if not all that exciting. Still, it gets the job done with little drama. Its ride and handling, likewise, are smooth and predictable, leaving nothing to complain about, but also nothing to brag about. For a sportier feel, you should look to the Mercedes GLA and BMW X1.

Fix the Cabin Technology, Check

One of our complaints with the previous XC40 was its infotainment system, but Volvo made changes in hopes of solving that problem in the refreshed SUV. Its dash is updated with a new 11.2-inch vertical touch screen display, which sits oddly high on the dash. While a few physical controls still exist, most functions, including those for climate control, are controlled through the screen. Volvo says that the new interface takes fewer taps to access important functions than before, however.

The system runs Volvo’s latest infotainment software and employs Google Gemini AI to provide natural-language voice response. We’ve tested the Swedish automaker’s implementation of Gemini in the 2027 Volvo EX60 and found it to be “interesting,” according to reviewer Tony Markovich, though it doesn’t allow you to directly control many vehicle systems.

Much of the rest of the cabin carries over as before, but with additional color and material options, a better wireless phone charger and improved ambient lighting. There’s still some shiny piano-black plastic around the crystal shifter, and our experience has shown that it doesn’t wear well over time.

One thing I love about this, and generally every other Volvo, is its elegantly simplistic Scandinavian style, with rich wood detailing, thoughtful lighting and excellent build quality. Despite being the entry-level model in the lineup, it doesn’t feel like they’ve cut any corners.

There’s ample leg- and headroom up front, but, like many vehicles in the class, rear-seat legroom is a bit limited for my 5-foot-11-inch frame (but not horribly so), and you really don’t want to try to fit three adults across. The XC40’s smallish rear doors don’t make getting in and out as easy as it could be, but again, that’s not uncommon in the class.

The XC40’s cargo space is average compared to rivals, but the pass-through in the center of the back seat makes carrying long items easy, and you can still use the outer two rear seats.

Safety? But of Course

Volvo’s corporate DNA is built around the idea of safety, both in avoiding collisions and protecting vehicle occupants during a crash. For the refreshed XC40, the automaker has updated and upgraded several technologies to further improve safety, incorporating new sensors and cameras so the SUV understands what’s happening around it. The updated tech includes 12 ultrasonic sensors, parking cameras and new radars front and rear. Its surround-view camera system now shows a 3D view.

New to the XC40 is a door opening alert that warns of approaching traffic before you open a door into its path (a feature that’s no longer uncommon in the industry) and a refined version of the optional Pilot Assist hands-on semi-automated driving system with lane-change assist.

We thought Volvo might offer its new adaptive seat belt, which can react to impending collisions before they happen, but for now that technology is reserved for the larger EX60.

How Much and When?

Pricing has not been announced, but we expect to see the 2028 XC40 in dealer showrooms early in 2027. To me, the updates are worth waiting for, unless you want a front-wheel-drive model with the smaller price tag, which won’t be offered for 2028.

The Basics