Volvo has confirmed that an all-new third-generation Volvo XC90 will be coming in the future – and it won’t be an electric vehicle (EV) model, as the phasing out of internal combustion engine (ICE) cars are taking longer than expected. This was confirmed by Volvo Chief Executive Officer (CEO) Håkan Samuelsson, who told investors in the company’s second-quarter earnings call, “We will need a new XC90.”
As reported by, Autocar Samuelsson added, “This is something I think European consumers will want to have. Plug-in hybrids with a longer range are a solution that probably we will need for some more years than we thought.”
This is further supported by the company’s press release saying, “Volvo Cars will also refresh its plug-in hybrid (PHEV) cars to offer an attractive bridge solution for customers and areas where charging infrastructure still is weak.”
The current-generation of Volvo XC90 has been on sale since 2015, and has only recently been given a facelift due to the delays of its supposed fully electric successor — the EX90.
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Autocar reported that the next-gen Volvo XC90 will likely be offered as a hybrid only, and will be based on the upcoming XC70, which is slated to be the company’s first extended-range plug-in hybrid electric vehicle (PHEV).
Built on a new Geely-based SMA (Scalable Modular Architecture), the XC70 is designed to meet the demands for longer-range PHEVs in China. From what we know so far, it will boast an electric-only range of up to 200 km (CLTC) and will soon be available for booking in China.
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Volvo’s electric transition has not been going as well as originally planned, as evidenced by the company’s announcement in May to cut 3,000 jobs. The Swedish carmaker also reported a 9% drop in sales compared to the first half of 2024. In response, Volvo has revised its original 2030 target of going fully electric, adopting a more diversified strategy that now aims for 90% electrified vehicles by the same date — comprising both EVs and PHEVs.
CEO Samuelsson attributed the decline in demand to an uncertain macroeconomic environment, tariff-related uncertainties, and intensifying competition. The announcement of a new XC90 aligns with Volvo’s revised strategy, with products that cater to customers’ demands as the brand adopts a “slowly but surely” approach toward its eventual goal of becoming fully electric.
For now, the facelifted Volvo XC90 PHEV is available here in Malaysia from RM434,888. Under the hood, it pairs a 2.0-litre turbocharged four-cylinder engine with an electric motor, delivering a combined output of 462 hp and 709 Nm of torque. Power is sent to all four wheels, allowing the SUV to accelerate from 0–100 km/h in just 5.3 seconds. Its 18.8 kWh battery provides an electric-only range of up to 77 km (WLTP).
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