Volvo plans to launch an electric SUV that is more affordable than the EX60, even if it means sacrificing the EX40?

Volvo is preparing a new electric vehicle for the European market in 2027. This model, potentially named the EX50, is expected to feature a family-oriented design and an “affordable” price point to attract more drivers. But where will it fit between the recently restyled EX40 and the newly launched EX60?

Volvo aims to accelerate the renewal of its lineup. The Swedish manufacturer has confirmed its intention to introduce 13 new vehicles by 2030. Three of these will be unveiled as early as 2027, including one specifically designed for the European market. This model could play a significant role in the brand’s strategy.

A more affordable future Volvo EX50?

As we reported a few weeks ago, Volvo is working on a relatively spacious and affordable electric vehicle, with initial deliveries expected after summer 2027. Several media outlets have already mentioned the name EX50, though this designation remains unconfirmed. This future vehicle could be based on the SPA3 platform, recently introduced with the Volvo EX60.

This next-generation electrical architecture operates at 800 volts and helps reduce charging times. It also integrates the battery directly into the vehicle’s structure to minimize its size and manufacturing costs. So far, Volvo has not disclosed any dimensions, technical specifications, or official price. However, the goal appears clear: to offer an electric vehicle capable of achieving significant sales volumes in Europe.

But what role for the EX40?

With a new SUV entering this segment, one might wonder how the EX40 will manage to stay relevant. Especially since it has just received a facelift! In September 2026, the manufacturer unveiled an updated version featuring a new lighting design, a 11.2-inch central screen, an improved multimedia system, and several enhancements to its driving assistance features.

But how much more affordable is the model? In France, the EX40 is currently priced at 46,950 €, while the Volvo EX60 starts at 66,500 €. There is thus a gap of nearly 20,000 € between these two electric SUVs. The same holds true for dimensions: the EX40 is 4.44 m long, compared to 4.80 m for the EX60. With an intermediate size and a price point between these two models, the future EX50 might easily find its place in the Swedish manufacturer’s lineup.

Two scenarios seem possible: coexistence between the EX40 and EX50, or a gradual replacement of the former by the latter. The second hypothesis is plausible, especially since the EX40 still relies on the old CMA platform, with a 400-volt electrical architecture. Its potential successor could benefit from newer technologies while reducing production costs. But for now, Volvo has not officially announced the discontinuation of the EX40. Its recent facelift might just allow it to continue in production for a few more years.

A push forward in a challenging environment

This offensive move comes as Volvo is going through a difficult period. The automaker reported an operating loss of 3.7 billion Swedish kronor in the third quarter of 2026, which is approximately 332 million euros. To turn things around, the brand plans to cut about 2,500 more jobs and reduce its expenses. Introducing a cheaper electric SUV could become a key factor in boosting sales in Europe.