Volvo will introduce an all-new electric vehicle in 2027, with the Swedish carmaker’s boss confirming that the upcoming model will target a more affordable segment of the market. While the name and nature of the new model remain under wraps, reports suggest it could replace the ageing EX40 small SUV, potentially adopting the EX50 name.

The announcement comes as Volvo prepares to expand its electric vehicle lineup while attempting to reverse declining global sales and improve profitability.

“In 2027 we will introduce our next BEV car based on the SPA3 platform, targeting a large lower-priced market segment, with the first customer deliveries starting after summer,” Volvo president and CEO Håkan Samuelsson said. “This will further strengthen our BEV leadership and improve margins.”

5

The announcement suggests the new model will sit below the EX60 medium SUV, potentially competing with the BMW iX1, Mercedes-Benz EQA and Audi Q4 e-tron. Although Volvo hasn’t confirmed whether the new vehicle will directly replace the EX40, the timing would make sense given the existing model’s age.

Originally introduced as the XC40 Recharge in 2020, the EX40 shares its ‘CMA’ platform with the petrol-powered XC40, making it one of the oldest electric vehicles in Volvo’s current line-up. Unlike the existing EX40, the upcoming electric vehicle will use Volvo’s latest ‘SPA3’ architecture, which debuted with the new EX60 (pictured above is a WhichCar by Wheels render of how the new model could look).

Developed specifically for electric vehicles, the platform is reportedly designed to reduce manufacturing costs while improving efficiency, driving range and charging performance thanks to an 800-volt architecture. It also introduces cell-to-body battery technology, which integrates the battery pack into the vehicle’s structure to reduce weight and improve interior packaging.

The new electric vehicle forms part of Volvo’s wider product offensive, with the manufacturer planning to introduce 13 new models globally by 2030 in an effort to turn around a recent 10 per cent decline in global sales in the first nine months of 2026. Despite the downturn, Volvo’s electric vehicles accounted for 32 per cent of its global sales during the third quarter of 2026, up from 22 per cent a year earlier.

Volvo has yet to confirm whether its newly announced electric vehicle will replace the EX40 or when it could arrive in Australia, but considering the popularity of the current model, we’d say that it’s quite likely.