Volvo eyes a new hybrid SUV, larger than the XC90, to challenge luxury rivals like Lexus LX and BMW X7. See how it could reshape US and China markets.
Why Volvo is eyeing a bigger SUV
Volvo’s executive board is actively studying the prospect of a new full‑size SUV that would sit above the current XC90 in size and price. The move is aimed at tapping the growing demand for three‑row luxury crossovers in key markets such as the United States and China.
Target segment and rivals
The existing XC90 measures about 4.95 m in length and is already one of Europe’s largest hybrid SUVs. However, it still falls short of the dimensions offered by German and Japanese competitors – the Lexus LX, BMW X7 and Mercedes‑Benz GLS – that dominate the premium “F‑segment”. A larger Volvo flagship would give the brand a true alternative in this space.
Hybrid powertrain over full electric
CEO Håkan Samuelsson explained that Volvo expects customers in the US and China to lean toward plug‑in hybrid solutions for large SUVs in the near term. Fully electric versions would require massive battery packs to achieve respectable range, adding weight and cost that could deter buyers. A hybrid drivetrain therefore appears to be the most practical compromise for a flagship model.
Possible production location
If the project gets the green light, Volvo may build the new SUV at its Charleston, South Carolina plant – the same facility that produces the XC90 and the upcoming EX90 on the SPA2 platform. Local assembly would help the model stay price‑competitive and strengthen Volvo’s brand presence in the North‑American market.
Leveraging Geely’s resources
Volvo could also tap into the broader Geely portfolio for chassis technology. The Chinese‑owned group’s Zeekr 9X, a larger SUV built on a flexible platform, could provide engineering insights or even serve as a base for a future hybrid variant.
What’s next?
Details such as the official name, exact dimensions and launch timeline remain confidential. Nevertheless, Volvo’s willingness to explore a larger hybrid SUV signals a clear intent to compete directly with German and Japanese luxury marques and to meet the sustained appetite for three‑row SUVs in the world’s biggest automotive markets.