Volvo halts production of EX40 electric SUV

Volvo has decided to halt production of its EX40 luxury compact electric SUV. In the United States, the 2026 model will be the final version sold. This decision follows a continuous decline in sales, with performance trailing significantly behind its gasoline-powered twin, the XC40.

Industry analysts suggest several factors contributed to the decline, including intense competition from more affordable Chinese electric vehicles, a lack of product differentiation regarding range and technology, and shifting consumer preferences toward larger electric SUVs or hybrid models.

While the EX40 production is ending, Volvo remains committed to its goal of becoming a fully electric manufacturer by 2030. The company plans to refocus its efforts on more competitive models such as the EX90 and EX30. There are also reports that a successor, potentially named the EX50, may debut around 2027 or 2028 using a new platform.