Plug-in Hybrid Variant of the Volvo XC90 Replaces the Existing Model
Volvo Cars has confirmed the development of a new iteration of its flagship SUV, the XC90, set to launch around 2028. This new model will be built on an evolved version of the SPA (Scalable Product Architecture) platform, known as SPA 1.5 [1,2].
The third-generation XC90 is expected to feature a long-range plug-in hybrid (PHEV) powertrain, offering an electric-only range of approximately 50-70 miles (80-113 km) [1]. This is a significant improvement over the current model's roughly 32 miles (EPA-est.) EV range [1].
While the 2025 update of the XC90 remains a heavily refreshed second-generation model, it continues with a 2.0-liter turbocharged four-cylinder engine paired with an electric motor and an approximately 15 to 18.8 kWh battery [1,3]. This setup produces around 455 to 462 PS (450+ hp) and about 709 Nm torque [1,3]. The updated model boasts an electric range of close to 70 km (WLTP cycle), enabling many daily trips with zero tailpipe emissions [1,4].
The long-range PHEV approach aligns with Volvo's current strategy to delay the full electric transition due to regional market variation in EV adoption [2]. The company's CEO, Håkan Samuelsson, has stated that European consumers will want plug-in hybrids for a few more years than originally anticipated [2].
It is worth noting that six out of ten cars that Volvo sells in Germany are already electric or plug-in hybrids, according to Samuelsson [2]. This trend is also evident in the Netherlands, where the share of electric or plug-in hybrid cars sold by Volvo stands at 90 percent [2].
By 2030, at least 90 percent of Volvo's cars will have a charging cable, either driving fully electric or as plug-in hybrids [2]. The technology for the new XC90's electric components may come from China [1]. There are suggestions that the new XC90 could be built using the same platform as the new plug-in hybrid SUV XC70 built in China [1].
The current conditions are affecting the transition of Volvo to pure electric mobility [1]. As a result, Volvo has scaled back its goal of switching to full electric cars by 2030 due to the varying pace of electric vehicle adoption worldwide [1]. However, Volvo remains fully committed to electric cars, as confirmed by the CEO, Håkan Samuelsson [1].
The facelifted XC90 is being marketed as an alternative to the new battery-powered SUV EX90 [1]. The new XC90 could be based on the new SMA platform of its Chinese parent company Geely [1]. Despite this, Volvo will continue to offer plug-in hybrid vehicles, but this does not represent a change in their strategy towards electric mobility [1].
In conclusion, the third-generation XC90 will indeed be a plug-in hybrid with a substantially larger electric range than the present model, targeting more than 50 miles of pure electric driving, and is planned for launch around 2028. This contrasts with the current 2025 model, which is a refresh of the existing generation with a smaller battery and lesser electric range but already offers strong hybrid performance and around 70 km of WLTP electric driving [1,4].
[1] Autocar. (2023). Volvo XC90 2025: release date, price, specs, and features. Autocar.
[2] Reuters. (2023). Volvo delays electric car target as it bets on plug-in hybrids. Reuters.
[3] Car and Driver. (2023). 2023 Volvo XC90 Review. Car and Driver.
[4] Motor Authority. (2023). 2023 Volvo XC90 Recharge: PHEV review. Motor Authority.
[5] Electrek. (2023). Volvo's next XC90 could be based on the new SMA platform of its Chinese parent company Geely. Electrek.
- Volvo Cars' new SMA platform, potentially adopted by the third-generation XC90, may be shared with other models, such as the new plug-in hybrid SUV XC70 built in China [1].
- The financing for Volvo's transition to electric and autonomous vehicles is expected to come from both traditional finance and the automotive industry, given the significant technological advancements involved [2].
- As the demand for electric vehicles grows, the transportation industry is anticipated to see a shift towards improved battery technology and more efficient charging infrastructure, which could potentially have a positive impact on the finance sector through increased market stability and investment opportunities.
