Volvo EX40 replacement tipped for 2027 as brand plots turnaround

A successor to the Volvo EX40 electric SUV is expected to use Volvo’s newer SPA3 underpinnings as one of 13 new models to be launched globally between now and 2030, with electric vehicles (EVs) spearheading a turnaround after falling global sales.

Volvo hasn't confirmed the identity of the upcoming model, however it has announced another vehicle on the SPA3 platform targeting a lower-priced market segment than the EX60 SUV, the first model to use the new underpinnings.

“In 2027 we will introduce our next BEV car based on the SPA3 platform, targeting a large lower-priced market segment, with the first customer deliveries starting after summer. This will further strengthen our BEV leadership and improve margins,” said Volvo president and CEO Håkan Samuelsson in a statement.

While not specifying that the model is an EX40 replacement, the Volvo boss’ reference to a ‘large lower-priced market segment’ points to the so-called C-SUV segment in which the EX40 competes.

According to an analysis published by Profit.ro, around 2.43 million C-SUVs were sold in Europe in 2025.

The new SPA3 platform uses cell-to-body battery construction, which the company said has contributed to difficulties ramping up EX60 production.

Volvo says it has received more than 50,000 European orders for the SUV, which entered production in April.

The current EX40 adopted its name in 2024, having previously been sold as the XC40 Recharge Pure Electric. It shares its CMA (Compact Modular Architecture) platform with the petrol-powered XC40 SUV, which entered production in 2017.

This platform is also used by the Polestar 2, with both brands part of the Geely Group alongside Zeekr, Lotus and Lynk & Co, the latter not sold in Australia.

A rival to the BMW iX1, Mercedes-Benz EQA and Audi Q4 e-tron, the EX40 currently starts at $69,990 before on-road costs for the single-motor version, while a dual-motor option adds all-wheel drive and is priced at $74,990 before on-roads.

An updated EX40, revealed in Europe in September, is scheduled to arrive in Australian showrooms sometime in 2027, with full details and timing yet to be announced.

Volvo detailed the upcoming SPA3 model as part of its third-quarter financial results, in which it confirmed global sales between January and September 2026 fell 10 per cent. It also announced plans to cut approximately 2500 jobs as it seeks another SEK5 billion (A$734 million) in savings.

EVs made up 32 per cent of its global sales in the third quarter, up from 22 per cent in the same period in 2025, with the automaker pinning its turnaround on the success of EVs. This comes after Volvo pulled back on its previous goal of selling only EVs by 2030.

In 2024, it revised that target to have fully electric vehicles and plug-in hybrids account for 90 to 100 per cent of its global sales by the end of this decade.

Volvo has outlined plans for four of the 13 upcoming models: the more affordable SPA3 EV, two China-specific models, and a new US-focused model with multiple powertrain options to be manufactured at its Charleston, South Carolina, plant.

The brand's Australian sales fell 6.2 per cent between January and September 2026, compared with declines of 7.7 per cent for Mercedes-Benz, 12.5 per cent for BMW, 12.9 per cent for Lexus and 21.3 per cent for Audi.

MORE: Explore the Volvo EX40 showroom