Notable changes continue in 2003 for Volvo's entry-level sedan. The engine is now more powerful, the interior and exterior have been updated, and several new features are now available. The 2003 S40 features a restyled grille and color-keyed bumpers and moldings. Volvo has attempted to improve the aesthetics of the dash once again, but adding a three-spoke steering wheel and a revised instrument cluster.

The S40 continues with one trim level: the 1.9T. A CD player has been added to the list of standard features this year. Options packages have also been adjusted. The Sport Package now gets a front and rear spoiler, blackout headlights and 16-inch alloy wheels. The Premium Package adds a leather-wrapped hand brake handle and shifter.

The S40's 1.9 liter inline four-cylinder is now a bit more powerful, making 170 horsepower and 177 pound-feet of torque. The five-speed automatic continues to be the only transmission option, and fuel economy is estimated at 22/30 mpg.

Volvo's entry-level sedan has received steady praise for its comprehensive list of safety features and solid build quality. The controls are easy to use and well-placed, and the cabin's overall feel is consistent with the higher priced Volvo models. While the front seats are wide and inviting, many larger passengers will find the rear quarters rather tight.

The interior is shielded from most wind and road noise, but test drivers have reported the noticeable intrusion of engine sounds when the throttle is opened.