The Volvo XC40 compact crossover SUV debuted in Milan in September 2017 as the inaugural vehicle built on the Compact Modular Architecture (CMA), co-developed with Geely. Produced as a 5-door crossover SUV, it established a youthful design aesthetic featuring optional two-tone contrast roofs, concave grilles, and clever cabin storage solutions. The model earned the European Car of the Year award in 2018.

Initial powertrains included 1.5-liter three-cylinder T3 and 2.0-liter four-cylinder T4/T5 petrol engines alongside D3/D4 diesel units. The range expanded with T4/T5 Recharge plug-in hybrids and B-series mild-hybrid petrol engines. In 2019, Volvo revealed the fully electric XC40 Recharge variant producing 408 hp via dual electric motors. A 2022 facelift refreshed the front bumper and headlight assemblies to mirror the styling of the C40 Recharge coupe-SUV.