Volvo's Lower-Priced EV Arrives to Compete in 2027
Volvo's SPA3 battery-electric model targets a larger, lower-priced segment as the brand pivots toward electrification.
Updated on Nov. 4, 2026 in Electric Vehicles
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Volvo plans a 2027 battery-electric vehicle built on its SPA3 platform, aimed at a larger, lower-priced segment, as part of a plan to cut about 2,500 jobs and save SEK5 billion. Its global sales fell 10 percent between January and September 2026, while EVs reached 32 percent of third-quarter sales.
Why it matters
Volvo is pinning its turnaround on electric vehicles, and the lower-priced SPA3 model could bring its EVs to buyers who currently find the brand's pricing out of reach. Global sales are down and the company is cutting costs, which signals a shift in how the brand plans to compete in the electric market.
Volvo's EV share rose from 22 percent of global sales in Q3 2025 to 32 percent in Q3 2026, while overall global sales fell 10 percent from January to September 2026. The EX40 currently starts at $69,990 before on-road costs for the single-motor version, and the EX60 has drawn more than 50,000 European orders.
The players
Volvo
Swedish automaker known for safety-focused vehicles, now pursuing an electric lineup with the EX40 and EX60 models.
The details
The new SPA3 platform uses cell-to-body battery construction, in which the battery forms part of the vehicle structure. The EX40 shares its CMA platform with the XC40 and Polestar 2. Volvo plans 13 new models globally between now and 2030, and the EX60 entered production in April 2026.
Timeline
2024: Volvo revised its all-EV-by-2030 target to 90-100 percent EV and PHEV.
April 2026: The EX60 entered production.
January-September 2026: Volvo's global sales fell 10 percent.
Q3 2026: EVs reached 32 percent of Volvo's global sales.
2027: The next SPA3 battery-electric vehicle launches and an updated EX40 arrives in Australian showrooms.
The Home Front
Volvo's 2024 revision of its all-EV-by-2030 target to 90-100 percent EV and PHEV sales set the baseline for this strategy. The 2027 SPA3 launch and planned cuts continue that shift toward a more mixed lineup rather than a fully electric one.
If you are considering an EV in the next couple of years, the upcoming SPA3 model and updated EX40 may offer new pricing options worth comparing against current models. Check each manufacturer's official listing for the specific trim and price in your market before budgeting, and have a licensed dealer or electrician confirm any home-charging installation.
The takeaway
Volvo's shift toward a lower-priced EV reflects a broader industry effort to make electric cars more affordable for everyday households. Keep an eye on launch timing and final pricing in your market before deciding on a purchase or a home charging setup.
What happens next
The next SPA3 battery-electric vehicle is scheduled for first customer deliveries after summer 2027, and the updated EX40 is due in Australian showrooms sometime in 2027.
Further reading
For more on how automakers are rethinking their battery-electric plans, explore our Electric Vehicles coverage.
Source note: This article includes information reported by The West Australian.
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