Volvo set to introduce next-gen EX40 in the US market to replace EX30; Is it India-bound?

Volvo has confirmed that it will be shelving the EX30 in the US market after the 2026 model year. Luis Rezende, president of Volvo Cars America, announced to reporters on the sidelines of the EX60 launch that the company’s smallest electric SUV would be replaced by a new entry-level model, one that is already in the works and will be launched in 2027.

The Swedish carmaker’s smallest electric SUV was to be positioned as its most accessible yet, but after several delays, it was eventually launched in 2025 at $44,900, carrying approximately $10,000 extra in tariffs. While Volvo had plans to launch a single-motor variant of the EX30 later this year with the aim of pricing it more competitively, the company announced in March 2026 that it would discontinue the model in the US market altogether, blaming market conditions and financial factors.

Although Rezende remains tight-lipped about the details, he says the new SUV will be priced in the same ballpark as the EX30, but implied that it would bring more space alongside an expanded set of goodies, as well as a fun-to-drive character. Aside from this, there are no further details about the mystery SUV as it is the first-ever mention of this model.

Next-gen EX40?

While there are no concrete details on the upcoming model, it is expected to be the next generation of the EX40 that is currently in the pipeline. It will be underpinned by the SPA3 architecture that debuted with the EX60, staying true to the promise of bigger space. This platform introduces mega casting and integrates the battery pack as part of the vehicle’s structure. Volvo claims this helps in cutting weight and improving efficiency as well as structural rigidity.

Pricing and India prospects

Volvo will have to cut costs heavily if it wants to price the new EX40 close to the EX30. The current EX40 is priced at $56,000 (~ ₹53.95 lakh) in the US. This only just undercuts the recently-launched EX60 by around $2,000 (~ ₹1.92 lakh). The modular nature of the SPA3 platform should help in achieving Volvo’s intended pricing, although it remains to be seen just how the company aims to bring it down to the $45,000 mark.

If the mystery SUV does turn out to be the new EX40, we expect the model to arrive in India sometime after its US launch. If it reaches our shores, it will sit in a price point that hovers between the EX30 and the EC40. The former is priced at ₹41.00 lakh, while the latter can be had from ₹59.00 lakh (both ex-showroom). As of now, Volvo has not mentioned a concrete timeline for the new SUV, only going as far as to mention a 2027 launch.

Check out Upcoming EV Cars in India.