Volvo drops EX40 in US, leaves gap until 2027

Volvo is discontinuing the EX40 in the United States and Canada, a move that leaves the $60,000 EX60 as the brand's most affordable electric vehicle. This decision follows the earlier removal of the EX30, leaving a noticeable gap in the lower end of the brand's electric lineup for North American buyers.

The EX40, which first launched as the XC40 Recharge in 2019, will be sold through the 2027 model year before being phased out. While the updated version continues to be available in Europe, it will not be offered in North America, forcing consumers to wait until late 2027 for a direct replacement.

A temporary gap in affordable options

With the EX30, EC40, and now the EX40 gone, the EX60 sits as the entry point for Volvo's electric SUVs. According to reports from Electrek, a new entry-level crossover is planned for launch by the end of 2027. This upcoming model, expected to be named the EX50, is projected to start at under $50,000, which is roughly $10,000 less than the current EX60.

The trade-off for buyers is a period of limited choice. The EX60 offers a longer range and faster charging, but at a starting price near $60,000, it is significantly more expensive than the outgoing EX40. This price difference creates a barrier for budget-conscious buyers who previously relied on the EX40 as a more accessible option.

New platform brings technical upgrades

The upcoming EX50 will ride on Volvo's SPA3 platform, the same architecture that underpins the current EX60. This transition promises practical improvements, including a longer driving range, faster charging speeds, and a larger interior. The new vehicle is reported to be taller and longer than the current EX40, addressing common criticisms about cargo space.

The EX60, which serves as the interim top-of-line model, benefits from an 800-volt electrical architecture. This setup allows the car to add 165 miles of range in just 10 minutes. It is also the first Volvo EV to include a built-in NACS charge port, enabling access to thousands of Tesla Superchargers without the need for an adapter.

Market pressures shape lineup decisions

Volvo's strategic shift is influenced by changing regulatory and economic conditions in the US. The elimination of the federal EV tax credit and the introduction of import tariffs have made it difficult for the brand to sell electric vehicles at competitive prices. As a result, the company has scaled back its commitment to becoming fully electric by 2030.

The planned EX50, even at its lower price point, remains significantly more expensive than the $35,000 EX30 that never reached the US market. This highlights the ongoing challenge for Volvo to provide a truly affordable electric option in a market where price sensitivity is high. Buyers interested in the current lineup can still find the EX60, but the absence of a sub-$50,000 option remains a significant limitation.