This SUV was expected to be phased out, but it’s now receiving an unexpected resurgence. | Carscoops

      The XC90 was initially set to be replaced by the EX90, but Volvo's CEO has now altered that plan.

      July 19, 2025 at 17:25

      

      by Thanos Pappas

      

      Volvo's CEO has confirmed that the company is developing a new generation of the XC90 SUV.

      The next iteration of the SUV may feature an advanced PHEV system derived from the XC70, which is targeted for the Chinese market.

      The current XC90 was launched in 2014, with updates occurring in 2019 and a facelift introduced in 2024.

      Volvo’s flagship SUV may not be retiring just yet. Even with the introduction of a fully electric alternative, it seems the XC90 is preparing for a third generation. This information was shared directly by Volvo CEO Hakan Samuelsson during a recent earnings call with investors.

      Samuelsson recognized the necessity for a new XC90, pointing out that the current model has been on the market for over a decade. Although he did not disclose a timeline for its launch, he did hint at what could be expected under the hood.

      Expected Plug-in Hybrid Powertrain

      The new XC90 is anticipated to feature a plug-in hybrid powertrain akin to what is being developed for the XC70, which is set to launch in China soon. "This is something I believe European customers will be interested in," stated Samuelsson. “Plug-in hybrids that offer a longer range will likely be necessary for a few more years than we had anticipated.”

      The larger 40 kWh battery option in the XC70 offers an electric-only range of up to 112 miles (180 km) according to the CLTC cycle. In comparison, the facelifted XC90 T8 has a significantly smaller 18.8 kWh battery that provides an electric-only WLTP range of 71 km (44 miles). Along with making it more appealing to consumers, a refined PHEV system would aid Volvo in lowering the average CO2 emissions rating of the XC90 and its overall lineup.

      Platform Transition Still Undetermined

      Volvo has yet to disclose which platform the new XC90 will utilize. The current version is built on the older SPA (Scalable Product Architecture), so a change is likely. One possibility is the Geely-sourced SMA (Scalable Modular Architecture), which is already associated with the XC70. Whether SPA 2, used for the fully electric EX90, or the forthcoming SPA 3 from the EX60 can be adapted for non-electric powertrains remains uncertain.

      The existing XC90 has been available since late 2014, receiving a mild refresh in 2019 and a more significant facelift in 2024. The latter was intended to maintain its competitive edge for a few additional years as a plug-in hybrid option against the similarly sized but fully electric EX90. Initially designed to be the XC90’s successor, the EV made its debut in late 2022, but production commenced in mid-2024 due to supply challenges and software issues.

      Strategic Shift Amid Changing Market Dynamics

      Back in 2021, Volvo had announced intentions to transition to an all-electric lineup by 2030. However, considerable changes in the market over the past few years have compelled the Swedish company to reevaluate its strategy and prolong the lifecycle of its internal combustion engine (ICE)-powered models.

      Furthermore, the slower-than-anticipated demand for EVs is not the only challenge the brand faces. To avoid tariffs, Volvo has had to significantly alter its future plans, particularly in North America and Europe.

      It is reported that Volvo will begin producing the XC60 at its Charleston facility in the US by 2027 and intends to phase out imported models from its US lineup. In Europe, production of the EX30 small SUV will shift from China to Belgium later this year, while the new EX60 will be built in Sweden starting in 2026.

      Sources: Volvo, Carbuzz