- Volvo will continue selling the XC90 alongside the new EX90 electric SUV
- Volvo has updated the XC90's exterior, interior, and chassis
- Gas powertrains in the updated XC90 now run on the Miller cycle
Volvo has just launched the electric EX90 three-row SUV but the current XC90 with its gas and plug-in hybrid powertrains isn't going anywhere.
An updated XC90 was unveiled on Wednesday and starts sales in the U.S. later this year with a base price of $59,745, including a $1,295 destination charge. That's quite the discount on the EX90's starting price of $81,290, although the electric SUV, which also starts deliveries later this year, may be eligible for tax credits.
The updated XC90 arrives as a 2025.5 model in the U.S., and there will be some initial overlap with the current version which has been on sale since 2015. The updates are substantial and include changes to both the exterior and interior, as well as upgrades to the chassis.
The platform is Volvo's SPA design which debuted in the current XC90 a decade ago, and Volvo has updated it with a new integral link rear suspension setup the automaker says helps with stability and traction while towing. Additional sound insulation was also added to deliver a quieter and more comfortable ride.
2025.5 Volvo XC90
For the U.S. market, the powertrains include two 48-volt mild-hybrid options (B5 and B6) and a single plug-in hybrid option (T8). All-wheel drive and an 8-speed automatic transmission are standard across the range.
The B5 uses a 2.0-liter turbo-4 rated at 247 hp while the B6 adds a supercharger to the engine for a healthier 295 hp. The T8 combines the 2.0-liter turbo-4 with an electric motor at the rear axle, with the gas engine delivering 310 hp at its peak and the electric motor delivering 145 hp. The T8 also has an 18.8-kwh battery that Volvo estimates will enable 32 miles of electric range based on the EPA test cycle.
The exterior styling mostly remains the same, and that's no bad thing given the good looks of the current XC90. The biggest change is at the front where new matrix LED headlights feature a slimmer design and also a new take on the Thor's Hammer daytime running light motif. The grille also features a new design that mimics a textile pattern.
Inside, a revised dash adopts a larger 11.2-inch touchscreen for the infotainment system which features Volvo's latest software already found in the EX30 and EX90 electric SUVs. The system comes with Google built-in and also supports Apple CarPlay and over-the-air software updates.
2025.5 Volvo XC90
The XC90 also benefits from some of the sustainable materials introduced on the EX90, like Nordico trim, a leather-like material made from recycled plastic bottles. The SUV can be equipped with Harman Kardon premium audio or, above that, a Bowers & Wilkins system with 19 speakers and four surround-sound listening modes.
For the U.S. market only six- and seven-seat configurations will be available.
Volvo has previously committed to exclusively sell EVs by the time 2030 rolls around, but the automaker on Wednesday also said it is backtracking on that plan and now aims to have 90-100% of its sales made up of both EVs and plug-in hybrids by 2030. It follows similar announcements from automakers like Cadillac, Hyundai, Mercedes-Benz, and Porsche, all of which have recently curtailed their EV ambitions in the wake of slower than expected growth for vehicles powered purely by batteries.
