Volvo is preparing a cheaper electric vehicle for 2027

After the EX60, Volvo announces a new, more accessible electric vehicle for 2027. A strategic model that could refresh its lineup of compact SUVs, with technology designed to reduce costs.

Volvo aims to expand its electric customer base. On the occasion of its quarterly results, the Swedish manufacturer confirmed the arrival of a new model targeting a more affordable European segment. The first deliveries are expected after the summer of 2027. This new model is part of an offensive that includes thirteen global launches by the end of 2030.

This vehicle, based on the SPA3 platform, should logically succeed the EX40, the electric version of the XC40. This hypothesis aligns with the announced positioning, but Volvo has yet to confirm its name or body style. Notably, “cheaper” here means cheaper than the EX60: there are no promises of a low-cost vehicle, nor any French pricing accompanying this announcement.

Savings at the Source

The interest goes beyond simply expanding the range. Launched by the EX60, the SPA3 architecture is intended to allow for more efficient manufacturing. Its giant molding process replaces around one hundred stamped parts of the rear floor with a single aluminum piece. Volvo thus announces a reduction in weight, the number of assemblies, and industrial costs. The battery integrated into the structure also contributes to this technical overhaul.

In its strategic presentation for 2025, Volvo estimated potential savings of 35% on the rear floor and 25% on batteries designed and assembled in-house. However, these industrial gains do not necessarily imply a corresponding decrease in the selling price.

The challenge remains to transform this ambition into delivered cars. The EX60 has already surpassed 50,000 European orders, but its ramp-up is taking longer than expected, particularly due to the new industrial technologies. For this future Volvo, the challenge will be twofold: to offer a convincing price and to meet the announced timeline for customers.

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• 26/10/2026 7:05

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