The Volvo brand’s first all-electric vehicle is the 2021 XC40 Recharge. The XC40 Recharge joins the gasoline-powered XC40 compact crossover suv that’s been on sale for the last three years. In doing so, Volvo gets the XC40 Recharge to market more quickly and avoids the cost of developing a whole-new battery-electric platform for this vehicle. This gives Volvo a heart-of-market battery electric vehicle in the fast-growing compact crossover SUV segment at a price closer to mainstream brands and significantly below the current electric offerings from luxury brands such as Audi, Mercedes-Benz, and Jaguar. The XC40 Recharge rolls with 402 horsepower and standard all-wheel drive.
When it arrives at dealer showrooms in early 2021, the Volvo XC40 Recharge will come in one well-equipped trim level at $54,985 including the $995 destination charge. While that’s a few thousand dollars dearer than Tesla’s hot-selling $51,190 Model Y, it seriously undercuts the $66,995 Audi e-tron, $68,895 Mercedes-Benz EQC, and $71,000 Jaguar I-PACE. The XC40 Recharge also qualifies for a federal $7,500 tax credit (the Tesla does not), as well as buyer incentives for low- and zero-emissions vehicles in some states. That said, the XC40 Recharge is some $20,000 more expensive than the base gasoline-fueled version of the subcompact SUV.