Swedish carmaker Volvo confirmed work on a third-generation XC90, but the project no longer targets a pure-electric drivetrain. Instead, company statements from mid-2025 point to an extended-range plug-in hybrid system. This has been attributed to uneven global EV adoption as the main reason for retaining an internal-combustion component.
New Powertrain & More Range
In China, Volvo has been selling the XC70 PHEV, which could provide clues about the XC90’s powertrain. That car pairs a 1.5-litre turbo-petrol engine with a 39.6 kWh battery, reportedly delivering up to 200 KM of electric range. If the larger SUV mirrors these figures, it would eclipse the current XC90 Recharge’s 50 KM electric capability.
The third-generation model is expected to migrate from Volvo’s decade-old SPA architecture to the newer Scalable Modular Architecture (SMA). The flatter battery floor promised by SMA should free up cabin space and improve crash performance, but adapting a China-developed platform to meet global regulations could delay the project.
Market Outlook
India’s SUV market is expanding, yet public charging remains patchy outside major cities. An extended-range PHEV addresses range anxiety without demanding a nationwide fast-charger network and strikes a good balance. The current XC90 facelift starts at Rs 1.03 Crore, but the new version could open between Rs 1.20 Crore & Rs 1.50 Crore, positioning it against the BMW X7, Mercedes-Benz GLS & incoming Audi Q6 e-tron.
Timeline
We expect a global reveal in 2026-2027, with the Indian launch likely 12-18 months later. Volvo’s flagship EX90 already integrates LiDAR, over-the-air updates & a Google-based interface. Whether these features will transfer unchanged to a mixed-powertrain XC90 remains unknown. Sourcing LiDAR sensors and validating advanced driver-assistance on a platform that also houses an internal-combustion engine could add engineering complexity and make it difficult to locally assemble due to the sheer amount of complex components required.
