New Volvo EX40 Preview: Cheaper SPA3-Based Electric SUV Set for 2027 to Take On Skoda Elroq and Ford Explorer

LONDON — Volvo is preparing a crucial new electric SUV for 2027, and it is expected to replace the brand's ageing compact EV with a more modern, more affordable model built on the company's newest platform.

Volvo will follow the EX60 next year with a more affordable electric model on its new SPA3 platform, set to take on the Skoda Elroq and Ford Explorer as a successor to the ageing EX40 crossover, Autocar reported.

What Volvo has confirmed

Volvo has not named the car but has confirmed its plans. "In 2027 we will introduce our next BEV car based on the SPA3 platform," the company said, adding that it will target a large, lower-priced market segment, with first customer deliveries starting after summer.

The model is part of a broader product push. It is one of 13 new models Volvo plans to launch globally by 2030, with electric vehicles spearheading a turnaround after falling global sales.

EX40 or EX50?

The final name remains uncertain. Electrek reported the new entry-level model is expected to go on sale as the EX50, a taller and longer electric SUV than the current EX40.

Why it matters

The current model is showing its age. The EX40 adopted its name in 2024, having previously been sold as the XC40 Recharge Pure Electric, and it shares its CMA platform with the petrol XC40, which entered production in 2017.

The new platform should be a big step forward. The SPA3 platform supports everything from compact SUVs to the three-row EX90. The switch could result in a larger EX40 with better performance and range.

Cheaper than today's car

Price is central to the plan. The current EX40 starts at £44,000. Reports suggest the new model will be priced in the "high $40,000s" in the U.S., significantly cheaper than the outgoing EV, which starts at $56,545.

According to Automotive News, it will be made at Volvo's new plant in Slovakia.

Building on the EX60

The new car follows a promising start for SPA3. Volvo said the EX60 has been "a big success," racking up more than 50,000 orders in Europe.

There have been some challenges, however. The SPA3 platform uses cell-to-body battery construction, which the company said has contributed to difficulties ramping up EX60 production.

A second model should help the business case. Volvo said introducing a higher-volume SPA3 model will speed up efforts to recoup the platform's substantial development costs.

Petrol XC40 stays

Buyers who prefer combustion engines will not be left out. The petrol XC40 is expected to remain on sale using the CMA platform. Volvo has already detailed a modest 2027 refresh for the XC40.

Outlook

The new SPA3-based compact SUV could be one of Volvo's most important launches this decade. With a modern platform, lower price and strong competition from Skoda, Ford and Chinese rivals, it will be central to Volvo's efforts to rebuild sales and remain competitive in the fast-growing electric SUV market.