Volvo Plans a More Affordable Electric Car for Europe
Swedish carmaker Volvo plans to unveil a new, relatively affordable electric car for the European market in 2027, possibly called the EX50. At the same time, the company is dealing with losses and cutting costs.
Swedish carmaker Volvo plans to present a new, spacious and affordably priced electric car for the European market in 2027. Deliveries could begin as early as the end of next summer. The news matters because the company is also facing financial difficulties while trying to strengthen its position in the electric car segment.
The new model
Media reports suggest the car may be called the EX50 and could eventually replace the current EX40. It is expected to be built on the SPA3 platform with an 800-volt electrical system, which allows faster charging and longer range.
The vehicle will be part of a wider Volvo product strategy: by the end of 2030 the company intends to introduce 13 new cars. Two new models for the Chinese market are also due to be presented in 2027.
Demand in Europe
Volvo's new electric SUV, the EX60, has drawn strong buyer interest, with more than 50,000 orders registered in Europe. In the third quarter of 2026, fully electric cars made up 45% of Volvo's total sales in Europe.
Financial situation
The carmaker is also under serious pressure. A sales decline in China, import tariffs, the withdrawal of buyer support programmes and other factors led to an operating loss of 3.7 billion Swedish kronor in the third quarter.
To improve its position, Volvo plans to save a further five billion kronor, cut investment by about 30% compared with 2024, and eliminate around 2,500 jobs worldwide. Of these, 2,000 are in Sweden.
