Volvo goes rear-wheel drive for the first time in 25 years! 2023 XC40 and C40 updates revealed

Volvo has upgraded its XC40 compact SUV and C40 hatch with greater range, faster charging, and for the first time in a quarter of a century, rear-wheel drive (RWD) only models.

The Swedish maker's last RWD model was the S90 luxury sedan which departed the Australian market in late 1998, with single-motor versions of the XC40 and C40 marking a return to that traditional configuration with a swap from front- to rear-drive.

Confirmed for local on-sale in late 2023 and starting from $76,990 before on-road costs, the new XC40 Recharge RWD's permanent magnet 'e-motor' produces 175kW, a three per cent increase over the outgoing front-wheel-drive version. And while it carries the same 69kWh battery, improved cooling in this upgrade increases (WLTP) range from 425km to 460km.

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Due to arrive at the same time and starting from $78,990, the C40 Recharge RWD single motor lifts range from 438km to 476km compared to the current FWD car. Charging capacity has also been boosted, with a 10-80 per cent charge taking 34 minutes using a 130kW DC charger.

But if your preference is for a single-motor XC40 or C40 with more muscle, new 185kW RWD versions with 82kWh battery packs extend (WLTP) range to 515 and 533km, respectively. 

Again, charging power is upgraded, this time to 200kW DC (previously 150kW DC), while a 10-80 per cent charge takes around 28 minutes.

The C40 Recharge RWD single motor lifts range from 438km to 476km compared to the current FWD car.

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Charging power is upgraded, this time to 200kW DC (previously 150kW DC), while a 10-80 per cent charge takes around 28 minutes.

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All-wheel-drive models also pick up power and range upgrades with the current 150kW motors on the front and rear axles replaced by a 183kW permanent magnet (Volvo-developed) unit on the rear axle and a new 117kW asynchronous motor at the front. 

This revised AWD set-up aligns with the bigger 82kWh battery pack and the previously mentioned battery cooling improvements to give the XC40 Recharge 'Twin Motor' AWD up to 500km on a full charge (+62km). The C40 Recharge Twin Motor AWD steps up to a 507km range (+56km).

At the same time new 19-inch aero-efficient alloy rims have been added.

For the twin motor variants, the XC40 starts from $85,990, while its C40 sibling starts from $87,990.

Volvo Car Australia Managing Director, Stephen Connor says the update is important for its customers, who value range and charging highly.

“These updates are another big step in our stated local strategy of becoming fully electric by 2026,” said Connor.

“The powertrain and battery upgrades in XC40 and C40 Recharge models will help us achieve this goal and accomplish our aspiration of selling 20,000 fully electric cars every year in Australia."

The XC40 was Volvo's top-selling model in Australia last year, the brand breaking through the 10,000 unit sales barrier here for the first time in its history.