Volvo is preparing a more affordable electric car that will sit below the EX60 in its range. The company expects first deliveries after the summer of 2027. The model could be the successor to the EX40, but Volvo has not confirmed this.
The car will be the next model based on Volvo’s new SPA3 electric platform. It is aimed at a broad segment of the European market and at buyers who want a cheaper alternative to the EX60. The news came alongside the company’s third quarter results.
What Volvo has not announced
Volvo has not yet revealed the name of the model, the price in Sweden or the range of variants. For now, a lower price segment describes the car’s position in the lineup more than its actual cost.
Could it replace the EX40?
One likely candidate is the successor to the current EX40, the electric model in the XC40 family. A more compact SUV would sit below the EX60 and give Volvo a new car in an important European segment.
This remains an interpretation of the planned positioning. Volvo has not confirmed that the next SPA3 model will be an SUV or that it will replace the EX40.
The announcement also does not mean the petrol XC40 is on its way out. A new electric car could arrive while the XC40 stays on sale on the existing CMA platform.
Volvo has also left the door open to additional body styles in its future European lineup. The new technology can be used on smaller vehicles too, which leaves room for models other than SUVs.
Technology shared with the EX60
SPA3 is designed for electric drive and is meant to underpin cars of different sizes. The platform allows the placement of the battery cells to be adapted to different body shapes.
The changes include a battery more closely integrated into the car’s structure, large cast body components that replace several smaller parts, and a new generation of powertrains.
It is still unclear which technology and battery options the next model will get. A shared platform does not automatically mean the same range or performance as the EX60.
More models to share the costs
The next electric car also has a financial purpose for Volvo. As more models use SPA3, development costs can be spread over a larger number of cars sold.
The company expects future models to require lower investment than the EX60, the first car launched on the platform. The aim is to improve profitability by applying the technology across a wider range.
The plan is part of Volvo’s goal of launching 13 new cars by the end of 2030, with different offerings for Europe, the United States and China.
What it means for European buyers
For European buyers, the concrete news so far is a new electric Volvo priced below the EX60, with deliveries expected from the second half of 2027. How much cheaper it will be remains to be seen.
