Volvo plans expansion into large luxury SUV segment

Volvo is planning to expand its presence in the large luxury SUV segment, aiming to compete with established models such as the Range Rover, BMW X7, and Cadillac Escalade. This strategic move involves developing a new flagship model that will be larger than the current XC90 and EX90. The new vehicle is expected to utilize hybrid propulsion and will be manufactured at Volvo's plant in Ridgeville, South Carolina, targeting high demand in both the United States and Europe.

In terms of current market comparisons, the Volvo XC90 Plug-in Hybrid T8 AWD offers 455 hp and matches the BMW X6's 0-100 km/h acceleration of 5.4 seconds, though it has a lower top speed of 180 km/h. The BMW X6 xDrive40i M Sportpaket delivers 381 hp and a top speed of 250 km/h.

Volvo's future design direction, expected to be previewed via a concept model in early 2027, will focus on cabin comfort and a return to physical buttons and controllers in response to user feedback regarding excessive touchscreen reliance.