Volvo is launching a ‘lower-priced’ EV in 2027 based on its SPA3 platform
The new EV will follow the EX60 as the second vehicle based on Volvo’s SPA3 platform, positioned as a smaller, more affordable option.
Volvo enters lower-priced EV market in 2027
As part of Volvo’s largest product offensive, the company plans to launch 13 new cars through the end of 2030.
All new vehicles will be tailored to specific markets, including the US, Europe, and China. Volvo announced during its third-quarter earnings on Friday that it will reveal three of the new vehicles in 2027.
One of the new vehicles will be for Europe and the other two are destined for China (more on the US later).
Following the EX60, which Volvo said has been “a big success,” racking up over 50,000 orders in Europe so far, Volvo will launch the second electric car based on its SPA3 platform.
According to Volvo the new model is a “global BEV car, which targets a large, lower priced market segment” in Europe. The first customer deliveries are set to begin after next summer.
While the company didn’t reveal any further details, the new vehicle is suspected to be the successor to the current EX40.
The SPA3 platform supports everything from sedans and compact SUVs like the EX30 to the three-row EX90. As a mass-market vehicle, the new SPA3-based EV will likely be an SUV.
Will Volvo bring the lower-priced EV to the US? It said it was a “global BEV car,” but also that it was aimed at Europe’s lower-priced segment.
Luis Rezende, president of Volvo Cars America, told reporters during a media roundtable (via TheVerge) earlier this year that the company is preparing to launch a new EV in 2027 that will replace the EX30 as its new entry-level electric car.
Volvo initially said the lower-priced Single Motor EX30 would go on sale in the US in late 2025 starting at $34,950, but later backtracked and discontinued the electric SUV from its lineup altogether.
Although it may not be as cheap as the entry-level $35,000 EX30, Renzende said prices would be “very similar.”
According to an Automotive News report, Volvo will launch the new electric crossover SUV by the end of 2027, starting at under $50,000.
The new entry-level model is expected to go on sale as the EX50, a taller and longer electric SUV than the current EX40.
Volvo filed a trademark with the European Union Intellectual Property Office (EUIPO) for EX50 in July. Although the filing didn’t reveal many details, it did confirm it will be electric.
In the meantime, Volvo is fast-tracking production of its first long-range plug-in hybrid versions of the XC90 and XC60. The first customer deliveries are set to begin this year in Europe, followed by the US shortly after.
In Q1 2027, Volvo will begin production of the XC60 in Charleston. By the end of 2030, it plans to begin production of a “second, all-new car with multiple powertrain options,” the company said.
