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I installed a Stealth Hitch on ours which I really like. It can be removed when not in use and the car then looks completely stock. I did the install myself which took far longer than the stated time - a combo of a few slight differences from the ICE version of the XC40 and being overly cautious with a brand new vehicle (especially when cutting into the bumper). I did get the full tow combo with active harness which I had programmed at my dealer for about $75. Towing short distances with the car has been a fantastic experience overall, and the receiver adapter also works well with our simple Allen Sports bike rack.

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2021 P8
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Yeah, we have the Draw-Tite hitch (aftermarket). Haven't actually used it for anything yet, though since we've only had the car for about two months. Because of the need to remove the entire bumper cover, we opted for a local shop to do it... I had done the same work on our old Bolt, and while it wasn't rocket science, it was way too easy to break tabs on the bumper cover (which I did with a few). I think our entire job was right around $1k and that including the wiring harness. The dealer wanted $1800 and wouldn't budge on price. You're paying a lot for the labor on this job, so if you're willing to do it yourself, I think you can do it all for about $250-300.
 

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We just leased a 2022 XC40 Recharge Ultimate, and will need a 2" hitch to be installed when spring comes, will not be using the hitch for towing, will be used for an E-bike rack. We used U-Haul when we had to install a hitch on our leased Honda CR-V, they did the job in about 30 minutes, price was about $200 for the hitch & labor, been using it for two years without any issue. I just checked U-Haul's website, looks like they have a hitch for the XC-40 ICE, no mention of the Recharge model. Assuming the ICE hitch can be on the Recharge, price for the hitch is ~$140, installation is another ~$140, with taxes the price out the door is ~$300. This looks to be a pretty good deal, assuming the U-Haul hitch can be used on the Recharge.
 

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My brother-in-law and I installed the Draw-Tite this weekend. It wasn't difficult and only cost $168 dollars on Amazon: Amazon.com: Draw-Tite Trailer Hitch Class III, 2 in. Receiver, Compatible with Select Volvo XC40: Automotive. Before purchasing, I gave Draw-Tite a call to determine compatibility, while they wouldn't comment on whether it fits a 2022 XC40, they acknowledged that people have installed it on the 2021 Recharge. If you're so inclined, etrailer.com has a number of videos on how to install: 2021 Volvo XC40 Trailer Hitch | etrailer.com. The only surprise during installation was the two styrofoam blocks between the bumper and body. We needed to "trim" these to fit around the hitch. An additional option is U-Haul for $135-ish without installation. From what I can tell, the U-Haul hitch is the same hitch as the Draw-Tite, as both are manufactured by Horizon.
 
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