This renaming initiative aims to create a clearer distinction between Volvo’s electric vehicles and their petrol-powered counterparts. While the traditional XC40 name will remain unchanged for the petrol version, the new nomenclature will bring consistency across Volvo’s electric lineup, aligning it with upcoming models such as the EX30 and EX90, which are slated for release in the first half of this year.

Despite the name changes, there will be no alterations to the design of the EX40 and EC40 models, except for the introduction of new badges. The EX40 will retain its characteristic squared electric subcompact SUV design, while the EC40 will continue to offer its sloped variant. Additionally, Volvo plans to introduce a new performance software package tailored for specific markets.

This software upgrade aims to enhance the driving experience by increasing the peak power output by 33hp for the dual-motor AWD variant and refining the accelerator pedal mapping for more responsive throttle response. Engaging the “Performance” drive mode will unlock a peak power output of 435hp, a notable increase from the previous 402hp in the dual-motor configuration. While this software package will be available as an optional upgrade for customers purchasing new 2025 models, Volvo also plans to offer existing owners of 2024 models the option to purchase and download the upgrade via the Volvo mobile app.