The debut of the EX60 signifies a fresh start for the Swedish automaker. Volvo previously aimed to completely transition away from gas-powered cars, but now it’s trying to maintain a presence in the electric vehicle (EV) market. Volvo’s EV journey has faced challenges; while the EX40 has been successful, other models like the EX90 and EX30 have struggled due to software issues and tariffs.
Volvo is hopeful the new EX60 compact SUV will restore its position in the EV sector. Unveiled in New York City with orders opening this summer, it starts at $59,795, pricing it between the gas-powered XC60 and its plug-in hybrid counterpart. The EX60 is launching in a tough climate for EVs, following the removal of federal tax credits and rising vehicle costs. However, Volvo is betting on the EX60’s 400-mile range, rapid charging capability, and regular software updates to succeed.
CEO Håkan Samuelsson argues that the car’s launch is timely since it won’t rely on subsidies but will provide consumers with a better option. Volvo’s plans to phase out gasoline vehicles by 2030 remain flexible, with considerations for plug-in hybrids and extended-range EVs also on the table. The EX60 reflects a new approach, built on modern, software-defined architecture.
Volvo aims to make frequent software updates to the EX60, believing shared digital architecture enhances quality and stability. The EX60 will face models like the Tesla Model Y and new entrants like the Rivian R2. Primarily sold in the US and Europe, the EX60 is not intended as a global car, as the automotive industry divides between China, Europe, and North America.
Volvo is also focusing on hybrids that function largely as EVs with combustion engines for backups, targeting American consumers’ preferences. Using Android Automotive, the EX60 will integrate AI features, and Volvo plans to update previous models to add conversational AI capabilities.
Volvo acknowledges past EV launch complexities, but with continuous improvements and a new model in the works to replace the EX30, the company plans to leverage its learnings to compete effectively. Chief Commercial Officer Erik Severinson highlights the anticipated success of the EX60, promising a more refined and widely sold vehicle.