For the 2021–2024 XC40 Recharge and 2025 EX40 built before the remedy, the high-voltage battery coolant heater can develop an internal short circuit, overheat, and ignite while parked. Volvo's recall (NHTSA 23V-836 / R10105) installs a battery management system software update and replaces the heater if diagnostics show damage. Corrected 2025–2026 EX40s with updated software or a replacement heater are not affected. If ignored, the vehicle risks thermal runaway and fire.

The Google Android Automotive system in the 2021–2024 XC40 Recharge and 2025–2026 EX40 can show a black or frozen center display, delayed boot, random reboots, audio drops, and lost phone connection. Because HVAC, audio, navigation, and camera controls are software-driven, a lockup also disables climate controls. Volvo has issued over-the-air updates, but owner reports persist through 2025 models. A hard reboot usually restores function, and some dealers have replaced the head unit under warranty.

The 12V auxiliary battery in the 2021–2024 XC40 Recharge and 2025–2026 EX40 can drain after short trips or extended parking, causing "12V battery critically low" or "propulsion system reduced performance" warnings, refusal to shift into drive, or a completely unresponsive car. Dealers often replace the 12V battery under warranty, and later software updates improved DC/DC converter and battery monitoring. If ignored, repeated deep discharge shortens battery life and may require a jump start or tow.

On 2021–2024 XC40 Recharge and 2025–2026 EX40 vehicles, the charge port door can jam shut from ice, snow, or debris, and DC fast-charging sessions may abort early with a charging error on some networks. Volvo has replaced charge port door actuators and updated charging-control software, with later models less prone but not immune. A stuck door may need manual emergency release, and an interrupted session adds charging time on trips. If the actuator fails, it must be replaced.

The 2023–2024 XC40 Recharge Single Motor and 2025–2026 EX40 Single Motor Extended Range use a rear e-axle that can emit a low-frequency hum or vibration at highway speeds and occasionally triggers a service required powertrain warning. Software updates and, in some cases, rear drive-unit replacement under warranty have been used by dealers. If a bearing fails, the car may show reduced power and need a new drive unit, which is very costly out of warranty.

Sporadic propulsion system reduced performance warnings can appear on 2021–2024 XC40 Recharge and 2025–2026 EX40 models after over-the-air updates or when the battery management system detects a transient error. The car may enter limp-home mode with reduced acceleration, but the warning often clears after a restart or at the next software update. Dealers diagnose the BMS, inverters, and drive units, then update modules; persistent cases have required drive-unit replacement.

Heat-pump-equipped 2021–2023 XC40 Recharge Twin Motor and 2025–2026 EX40 models can produce lukewarm cabin heat and slow defrost below about 20 degrees Fahrenheit when preconditioning is not used, leading to fogged windows and sharply reduced range. This is a design limitation rather than a component failure, and Volvo addressed it with climate-control software updates and grid-powered preconditioning. A genuine heat-pump compressor or valve failure would require replacement, but most complaints are managed by preconditioning rather than repair.