Volvo has given its popular XC40 a substantial makeover ahead of the compact SUV’s 10th birthday, introducing fresh styling, a more upmarket interior and significantly upgraded technology. And there’s good news for Aussie fans of the brand, with a cheaper entry-level B3 variant on the way priced at around $50,000.

The extensive refresh comes as competition in the premium small SUV segment intensifies, with new-generation versions of the Audi Q3 and Mercedes-Benz GLA arriving on the scene and an updated BMW X1 also on the horizon.

Front three-quarter view of a silver Volvo SUV parked on a paved surface near a textured wall.
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Despite the scale of the changes, there’s no mistaking the new model for anything other than an XC40. However, Volvo’s designers were given considerable freedom to overhaul the front and rear of the vehicle rather than simply making minor cosmetic tweaks.

Up front, the entire nose has been redesigned, including the bonnet, bumper and grille. The latter is now lower and wider, stretching across to meet a new interpretation of Volvo’s trademark ‘Thor’s Hammer’ matrix LED headlights. Those lights now feature a sharper two-piece signature, while new alloy wheel designs include a distinctive 20-inch triple two-spoke option.

It’s a similarly comprehensive story at the rear, where slimmer and more angular vertical tail-lights feature a dark smoked finish. Volvo has also cleaned up the bumper and reshaped the tailgate, adding stronger character lines for a more sculpted appearance.

“When we designed this, we thought it’s a good balance between solidity, but also having an athletic character,” designer Alain Snoodijk said.

The exterior treatment has also been applied to the battery-electric EX40 and coupe-styled EC40, although their closed-off front panels distinguish them from the petrol-powered XC40.

Interior of a modern car showing a digital dashboard, steering wheel, and large central touchscreen display on the passenger side.
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Arguably the biggest changes are found inside, where all three models receive a new 11.2-inch floating central touchscreen running the latest version of Volvo’s Google-based infotainment system.

The updated interface is claimed to be faster and easier to navigate, reducing the number of inputs required to access commonly used functions. Google’s Gemini AI assistant is also integrated into the system, allowing more natural voice conversations as well as handling tasks such as route planning and finding nearby destinations.

Volvo has also lifted the cabin ambience with indirect dashboard lighting and a broader selection of premium materials. Available combinations include Arianne Cardamom leather upholstery matched with Brown Ash wood trim.

There’s less gloss-black plastic around the centre console, while the existing wireless phone charger is joined by additional storage space for another device.

Safety technology has also received attention. Upgraded cameras, radars and other sensors are paired with new computer hardware and software, enabling additional driver-assistance functions.

Among them is a safe-exit warning designed to alert occupants if they’re about to open a door into the path of approaching vehicles, cyclists or pedestrians.

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There are no major changes under the skin. Overseas, the XC40 continues with a range of mild-hybrid petrol engines matched to a seven-speed automatic transmission.

The electric EX40 offers up to approximately 570km of driving range, while the more aerodynamic EC40 stretches that to around 578km.

At the performance end of the electric range, the EC40 P8 Performance AWD produces about 325kW and can accelerate from 0-100km/h in less than five seconds.

Australian pricing, specifications and arrival timing for the updated XC40, EX40 and EC40 have yet to be announced.