- In the face of Tesla and rising competition from General Motors and Hyundai-Kia, Volvo's EV sales have struggled.
- But it offers plenty of hybrids and PHEVs, which will get a boost with a "substantially refreshed" XC90.
- Volvo said there could also be one or two surprises at the XC90 reveal next month.
Volvo Cars announced today that it will reveal a "substantially refreshed" XC90 on September 4. The announcement comes as the Swedish automaker is undergoing a significant strategic overhaul amid uneven EV demand in the U.S. and rising hybrid sales.
The automaker also shared a teaser which, frustratingly, reveals nothing. It's just an awkward overhead shot of what seems to be the all-electric three-row EX90 and the updated XC90 parked facing each other. We're driving the former this week and will have the review and plenty of insights soon. Meanwhile, the highly-anticipated EX30 hatchback has been delayed to 2025 for the U.S. due to the punitive tariffs on Chinese-made cars. Originally set for production at Geely Group’s factory in China, the EX30 will now be built at Volvo’s plant in Ghent, Belgium.
That car is already a big hit in Europe and is highly anticipated in the U.S. It was the third best-selling EV on the continent in the first half of 2024 after the Tesla Model Y and Model 3. It's also boosting Volvo's global plug-in sales, which increased by nearly 45% in the first half of the year. So before it arrives in the U.S., Volvo will likely count on the refreshed XC90 to achieve two goals: Cater to the increasing demand for hybrids and also boost its overall U.S. sales, which have tanked by 28.1% in H1 compared to the same period last year.
Volvo already offers two fully electric models in the U.S., the C40 Recharge and the XC40 Recharge. They haven't found many homes this year. In fact, the Swedish automaker's PHEVs outsold fully electric models by a ratio of nine to one in the second quarter of this year. The XC90, XC60, S90, S60 and V60 all have plug-in hybrid versions in the U.S., which are selling better than their EV-only siblings. That begs the question: What new will the "substantially refreshed" XC90 bring to the table? We'll find out soon, so stay tuned.
Volvo also said there could be one or two surprises at the XC90 reveal. What could those be? Leave your thoughts in the comments.
