Volvo is preparing a more affordable SUV for 2027
Volvo is preparing a completely new electric SUV to launch in Europe in 2027. The vehicle (EX50?) is expected to offer ample interior space at an affordable price. It remains unclear whether it will be positioned alongside the recently updated EX40 or serve as its successor.
The new European model is part of a renewal plan for the Swedish brand, which is going through a difficult period. This includes operational losses and another round of cost and staff cuts.
Volvo preparing an SUV between EX40 and EX60
Reports suggest a new electric SUV that will fill a mid-tier position in the lineup between the EX40 and EX60. Hence, the name might be EX50 (though this is unofficial).
A more spacious model than the EX40, but less expensive than the EX60 (which starts at 65,000 euros in Italy), it is aimed at those looking for a family electric vehicle without having to pay the high price of larger premium SUVs. Volvo has not yet announced the price of the new vehicle, nor its dimensions or technical specifications. Therefore, it is not possible to determine how affordable it will actually be.
800-volt platform: lower costs and faster charging
One of the most likely technical solutions is the use of the SPA3 platform, recently introduced with the EX60. This is a next-generation electric architecture with an 800-volt system designed to enable faster charging and better integration of vehicle components.
A key element is the Cell-to-Body technology, which integrates the battery into the car’s structural frame. This approach allows for optimized use of space and can help reduce weight and production costs. However, the new architecture is not without challenges: integrating the battery is actually slowing down the increase in EX60 production.
For the new model, which is expected to achieve higher sales volumes, it will be important to find a balance between technical innovation, industrialization, and final price. Initial deliveries are scheduled for late summer 2027.
Will the EX40 continue to exist?
Volvo’s new European electric vehicle might replace the compact EX40 – perhaps not right away – despite its recent update. The SUV still uses the CMA platform with a 400 Volt architecture, which is older compared to SPA3.
This doesn’t mean its retirement has already been decided. The recent facelift could extend its availability on the market, allowing it to coexist with the future model. Alternatively, the EX50 might gradually take its place by offering a more modern technical base and greater economies of scale.
So far, Volvo has not confirmed either scenario.
Volvo is developing an SUV for a comeback
Volvo’s new offensive comes at a difficult financial time for the company. In the third quarter of 2026, Volvo recorded an operating loss of around 332 million euros, with an operating margin of -5.6%. Factors affecting its financial performance include competition, tariffs, the end of certain purchase incentives, and a sharp decline in sales in China, which dropped by nearly 50% according to reported data.
To improve the situation, the brand plans to eliminate approximately 2,500 additional jobs and reduce its expenses.
In this context, launching a more affordable electric SUV for Volvo would not only expand its product range. It could also serve as a key tool to boost sales in Europe as the company strives to restore financial balance.
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