Business 242
Tesla Faces Shareholder Pressure Over Hardware 3 Upgrade Silence
Volvo to launch lower-priced electric SUV on new SPA3 platform in Europe in 2027
Volvo will add a second electric model on its new SPA3 platform in Europe next year, targeting a cheaper segment than the EX60 as part of a 13-car global launch plan by 2030.
By George Kensington · 3 min read
Volvo will launch a second electric car based on its new SPA3 platform in Europe next year, following the EX60 SUV, as the Swedish manufacturer moves to broaden its line-up in a more affordable market segment. The new model is expected to begin deliveries after summer and will target what the company describes as a large lower-priced segment than the EX60, which is priced between £57,000 and £70,000.
The car is one of 13 new models Volvo plans to launch globally by 2030 and will be designed and engineered primarily for the European market, reflecting the company's new regionalised product development strategy. Volvo has not released firm technical details, but the positioning suggests a smaller SUV aimed at Europe's popular C-segment, where the ageing XC40 currently competes. The XC40 was recently facelifted after nearly a decade on sale and remains Volvo's second best-selling model line after the XC60, for which the new EX60 serves as an electric equivalent.
It is possible the new volume-focused model will replace the EX40 electric SUV, which starts at £44,000, while the petrol-powered XC40 remains on sale on the older CMA platform. Volvo has previously said its new European line-up will eventually include new low- and high-body types, hinting at a return to saloon and estate segments it has pulled back from in recent years. However, the second SPA3 car's volume focus makes an SUV more likely, given the greater popularity of taller cars in the region.
The SPA3 platform can accommodate vehicles ranging from the 4.2-metre EX30 to the 5.0-metre EX90 and has been engineered for packaging flexibility, allowing battery cells to be rearranged within the floorpan to suit different vehicle shapes. It introduces several developments over its SPA2 predecessor, including a new cell-to-body battery design, megacasting production that reduces the number of individual parts, and new-generation drivetrain hardware intended to improve efficiency and dynamics.
Volvo said a second, higher-volume model on SPA3 will accelerate its efforts to recoup the substantial development and production costs associated with the bespoke platform. That is particularly important as the company battles to recover from heavy losses in recent months and pursues an ambition to achieve an 8% profit margin. Alongside the European push, Volvo is developing a new flagship SUV for the US based on the XC90's SPA2 platform and six models specifically for China using modular architecture from parent company Geely.
8
