Volvo's New Sedan Spied: May Not Be All-Electric, Possibly ICE-Powered

Volvo is planning a return to the midsize sedan segment — but its latest spy shots suggest a powertrain strategy that diverges from its current all-electric focus. Recently, heavily camouflaged images of a new Volvo test mule surfaced on overseas outlet NewCarScoops, drawing industry attention.

The photos reveal a sleek, four-door sedan profile under thick camouflage. Key details remain visible: a roof-integrated LiDAR module hints at high-level autonomous driving capability — yet a conventional exhaust tailpipe is clearly visible at the rear axle. That feature contradicts typical BEV design logic and strongly suggests an internal combustion engine (ICE) powertrain.

Notably, this prototype is widely believed to be built on Volvo's new SPA3 platform — which the automaker officially defines as an "all-electric-exclusive architecture." It remains unconfirmed whether this test car represents a fuel-powered derivative of the SPA3 platform or merely an early engineering validation mule. Foreign media stress this is an "early-stage test vehicle," and its production form may still change.

Meanwhile, Volvo continues advancing its battery-electric rodmap. The EX60 — the SPA3 platform's debut production model — has just launched as a 2027 model year vehicle, starting at $58,400. The high-spec P12 AWD variant is expected to begin deliveries this year, offering up to 400 miles (≈644 km) of EPA-rated range; the currently available P10 version delivers 330 miles (≈531 km) and supports 165-mile (≈266 km) fast charging in just 10 minutes. Additionally, the entry-level EX50 has been confirmed to succeed the outgoing EX40 as Volvo's next-generation electric SUV flagship.

On the powertrain front, Volvo is pursuing a multi-track strategy: alongside the EX60 and EX50, the brand plans new plug-in hybrid (PHEV) and conventional hybrid variants across core SUV lines — including the XC40, XC60, and XC90. Reports also indicate a refreshed S70 hybrid sedan is under development.

It's worth noting that Volvo has announced it will fully discontinue U.S. sales of the EX30 after the 2026 model year. Originally slated to launch at ~$35,000 as an affordable compact BEV SUV, the EX30 was ultimately canceled for "market conditions and financial considerations" — a decision closely tied to the expiration of U.S. federal EV tax credits and rising import costs for European-built vehicles.