Volvo is working on a new entry-level electric SUV targeting a roughly $40,000 starting price for a 2027 US launch, according to Volvo Cars America president Luis Rezende. The announcement fills the hole left by the EX30, a subcompact electric crossover that was priced out of its intended market before most buyers ever saw it on a dealer lot.
What happened to the EX30
The EX30 debuted with a $34,950 promise — an unusually sharp price for a Scandinavian brand. Then the Biden administration's May 2024 Section 301 tariffs hit Chinese-built EVs at 100%, adding roughly $10,000 to the sticker. By the time the 2025 model arrived, only the Twin Motor trim remained, starting at $46,195. The single-motor Extended Range version that was supposed to anchor the lineup at $35k never made it to US showrooms. Volvo pulled the EX30 from the US market entirely in March 2026.
The replacement takes shape
Rezende confirmed the new model will be priced "very similar" to the EX30's original target — landing around $40,000 — and will offer more interior space than the outgoing car, — per Electrek (May 19, 2026). No model name has been confirmed, but InsideEVs (May 2026) reports the likeliest candidate is a next-generation EX40 built on Volvo's SPA3 platform — the same architecture underpinning the new EX60. SPA3 is designed to scale across vehicle segments, which gives Volvo engineering flexibility to hit a lower price point with a smaller, simpler configuration.
That said, the current EX40 starts near $56,000. Getting a new variant down to $40,000 will require either a stripped base trim, meaningfully lower battery costs, or both.
At $40,000, the replacement would compete directly with the Tesla Model 3 (from $42,990) and the Toyota bZ4X (from $34,990) — a crowded segment where buyers are increasingly sensitive to every thousand dollars.
Where the EX60 fits in
While the replacement is still a year out, Volvo's EX60 is already on sale above it. Priced from $58,400 for the P6 rear-wheel-drive trim and topping out at $68,700 for the P10 Ultra, the EX60 delivers 295–400 miles of EPA-rated range and charges via NACS (the Tesla-developed connector now becoming the US standard). That puts it directly against the BMW iX3 at $61,500 and the Mercedes GLC electric.
Tariff risk remains a live variable. The EX60 is built in Europe, and any new Section 232 duties on EU-assembled vehicles would affect its pricing. Rezende has not addressed that scenario publicly.
Timing
The replacement EV is targeted for a 2027 launch. No pre-order page or confirmed powertrain specs have been released. Given that Rezende's comments suggest development is well advanced, a reveal could come within the next 12 months.
