Updated Volvo XC40 and EX40: New Lights, 11.2-Inch Screen and Safety Hardware, With Australian Arrival Reported for 2027 and No Price Yet

Image credit: Volvo Cars Australia. Overseas models shown: updated EX40 (left) and XC40 (right).

Volvo's compact SUV pair is getting a substantial update. The updated XC40 and the electric EX40 keep, as far as Volvo has said, their current powertrains, but much of what you look at or touch changes: the headlights, the nose, the tail, the centre screen and the software behind it, and the sensors the safety systems rely on. Volvo Cars Australia has put the announcement on its own website, which tells you the cars are on its radar for this market.

What it has not done is price them or date them. The page carries no Australian timing, and the date in circulation comes from Australian outlets, which report that Volvo Cars Australia expects the updated XC40 and EX40 sometime in 2027. So this is a story about what is confirmed, what is only reported, and what a buyer looking at an XC40 or EX40 today should do about it.

What Volvo Has Confirmed

Everything in this section comes from Volvo's announcement on its Australian site. Volvo adds a line worth keeping in mind: feature availability varies by market, and some features are optional. None of what follows is an Australian specification yet.

Outside

• New Thor's Hammer Matrix LED headlights with a reworked light signature
• An upgraded grille and a redesigned front bumper, bonnet and front wings
• On the XC40 and EX40, new LED tail-lights, an upgraded tailgate and a redesigned rear bumper
• New 18, 19 and 20-inch diamond-cut wheels for the XC40

Inside

• A new, larger 11.2-inch centre screen running Volvo's latest interface, which Volvo says needs fewer taps to reach key functions
• Google Gemini as the voice assistant on cars with Google built-in, for navigation, stops and messages in everyday language
• An updated wireless phone charger and reworked storage
• New upholstery and trim choices, including Arianne Cardamom leather with Brown Ash wood decor for the XC40, and Black Ash or aluminium decor

Safety hardware

This is the part of the update that matters more than it looks. Volvo describes a new sensor and software platform: new front and corner radars, a new front camera, new rear corner radars, 12 new ultrasonic sensors and new parking cameras. On top of it Volvo lists automatic emergency braking and automatic emergency steering, plus three new or upgraded functions:

• Door Opening Alert, which warns occupants before they open a door into passing traffic or a cyclist
• Pilot Assist with an added lane change assist, which Volvo's announcement describes as optional
• The 360-degree camera upgraded to a 3D view, also described as optional

Two of those words deserve a closer look for Australia. Volvo Cars Australia's current XC40 page lists Pilot Assist as included on the Plus grade, and puts the 360-degree camera on the Ultra. Its current EX40 page lists the 360-degree camera as included on the Ultra, the only EX40 grade it shows. So "optional" in a global announcement does not necessarily mean optional here. Equally, nothing yet says the Australian cars will keep their current equipment split. That is a question for the day Volvo Cars Australia publishes its specification.

The cars also get over-the-air software updates, which Volvo says bring new features to cars already on the road.

The Range Number, and Why It Is Not Ours Yet

Volvo's announcement says the EX40 offers up to 575km of electric range, and the EC40 up to 584km, both preliminary WLTP figures. The EX40 on sale in Australia today is quoted by Volvo Cars Australia at up to 520km for the Single Motor Extended Range and up to 485km for the Twin Motor.

It is tempting to read that as a 55km gain. We would not. Volvo has not said which EX40 powertrain the 575km figure belongs to, whether it reflects a hardware change or a different market's version of the car, or whether that version is coming to Australia at all. Volvo's own small print calls every range figure preliminary. Until an Australian range figure is published for an Australian variant, the honest number for a buyer here is still 520km.

For reference, here is what Volvo Cars Australia quotes for the cars on sale now:

Volvo Cars Australia's EX40 page also quotes around 28 minutes for a 10 to 80 per cent charge at a 200kW DC charger. Its XC40 page labels its fuel and power figures preliminary with certification pending, and gives 166g/km of CO2 and a 54-litre tank. Volvo has announced no powertrain changes with the facelift.

What Is Only Reported So Far

Three things are circulating in Australian coverage that Volvo Cars Australia has not put on its own site. We are passing them on as reports, not facts:

• Timing. Volvo Cars Australia is reported to have told local outlets that the updated XC40 and EX40 will arrive sometime in 2027. Volvo's global announcement says production starts later in the northern autumn, with orders open in selected markets.
• The EC40. The coupe-style EC40 is part of Volvo's announcement and appears in the photographs, but it is not on sale in Australia and is reported as not returning.
• A cheaper XC40. A new entry-level B3 mild-hybrid XC40 has been reported for the Australian range, sitting under the B4. Volvo Cars Australia has not confirmed it, and it has published no Australian outputs or price for it.

That last one is worth watching. If it happens, a cheaper entry point would matter more to price-sensitive buyers than anything on the equipment list. But a reported variant with no price is not a reason to change plans yet.

The EX40 and the FBT Line

This is the part of the story nobody can answer yet, and it could matter more than the new screen. We list the EX40 Ultra Single Motor Extended Range at $69,990 and the EX40 Ultra Twin Motor Performance at $74,990, both before on-road costs, checked against Volvo's pricing in June.

As general information: for the 2026-27 financial year, a battery-electric car can qualify for the fringe benefits tax exemption on a novated lease when its value is under the $91,661 fuel-efficient luxury car tax threshold. Both EX40 grades are comfortably under that. But the government announced in the 2026-27 Budget that from 1 April 2027 the full exemption narrows to electric cars at or under $75,000, with a 25 per cent discount above it. The ATO notes that the measure is not yet law. The Twin Motor's listed price is $10 under that figure.

The updated EX40 is reported for 2027, so there is a real chance it lands after that date. If Volvo prices the facelifted Twin Motor even slightly higher, or if the figure tested for your car includes options such as paint, a lease signed after 1 April 2027 may no longer get the full exemption. The Single Motor has about $5,000 of headroom. The government has said existing leases won't be affected by the change, which is why the timing of the facelift matters to anyone weighing up the current car against the new one. Check your own position with your lease provider or accountant, because this is not tax advice and the details of what counts towards the value matter.

The petrol XC40 is a different case. It is not battery-electric, so it is not eligible for the electric car FBT exemption at all, and at 7.3L/100km it falls under the ordinary luxury car tax threshold of $80,809 for 2026-27, which the current XC40 range sits well below. Our FBT-exempt cars list explains the rules in more detail.

What It Is Up Against

The updated cars are not on sale, so they are not in the comparison below. What is in it are the XC40 and EX40 you can order today, plus the small premium SUVs a buyer at this money is likely to cross-shop. Pick any two.

The obvious electric rival is the BMW iX1 xDrive30, which we list at $77,900 before on-roads, checked against BMW Australia's configurator in September. It has 230kW against the EX40 Twin Motor's 300kW, and it costs $2,910 more than the Twin Motor at the prices we list. On current numbers the EX40 is the cheaper car with more power, and it is the one under the $75,000 line. That is the position the facelift has to protect.

From inside Volvo's own range, the EX30 Plus Single Motor at $49,990 before on-roads is the cheaper way into an electric Volvo, but it is a smaller car with a smaller boot: we list 318 litres, against the 410 litres Volvo Cars Australia quotes for the EX40. And for buyers not ready for a plug, the Lexus UX 300h Sports Luxury at $62,320 is the hybrid alternative, at 4.2L/100km against the XC40's 7.3L/100km, again from the figures we list. Against a petrol BMW X1 xDrive20i or an Audi Q3 TFSI quattro 150kW, the XC40 is very close on outputs and fuel use, so equipment and price will decide it once the new car is priced.

If you tow, we list 2,100kg braked for the XC40 against 1,500kg for the EX40 Single Motor and 1,800kg for the Twin Motor. Volvo has not published towing figures for the updated cars. Our TowingSorted planner is the quickest way to check whether a caravan or trailer fits either car you are considering.

What Volvo Has Not Told Us Yet

• Australian prices for any updated XC40 or EX40.
• An Australian arrival date on Volvo's own site. The 2027 timing is reported.
• The Australian line-up: which grades, which powertrains, and whether the reported B3 is real.
• Equipment: whether Pilot Assist and the 3D 360-degree camera are standard or optional here.
• Range for any Australian EX40 variant, and whether the 575km figure applies here.
• An ANCAP rating. The updated cars are unrated, and we hold no ANCAP rating for the XC40 or EX40 currently on sale.
• Weights, boot volume and towing figures for the updated cars.

What This Means for Buyers

If you want an XC40 or EX40 now, there is no reason to panic-buy or to freeze. The updated cars are reported for 2027 with no date, and the changes are to the lights, the cabin technology and the sensors rather than to what drives the wheels. As far as Volvo has said, a current car bought at a good price has the same powertrain as the updated one. As the facelift gets closer, run-out offers become more likely, and we track them on our deals page.

If the safety hardware is what you care about, it is a genuine reason to wait. A new radar and camera platform with automatic emergency steering and a door opening alert is hardware, so it is not something a software update can add to the current car. Just do not assume the Australian equipment list until it is printed.

And if you are leasing an EX40, the date matters as much as the car. A current EX40 on a lease that starts before 1 April 2027 sits under both the threshold that applies now and the $75,000 figure announced for later. The updated car's position is unknown until Volvo prices it.

We will add the updated XC40 and EX40 to the CarSorted directory with full specifications once Volvo Cars Australia publishes them, and update this story when pricing is announced.