The XC70 is described as slightly larger than the XC60 and looks essentially like a downscaled XC90. But rather than being a close technical relation of that car, it’s based on a new architecture adapted for long-range PHEVs.
The Scalable Modular Architecture (SMA) is said to be “a premium extended-range plug-in hybrid architecture”, but no details of its relationship to Volvo’s other platforms – or indeed those from the wider Geely group, of which Volvo is a part – have been given.
Fellow Geely brand Lotus is also investing in extended-range hybrids over the coming years in response to lower than anticipated demand for all-electric luxury cars, while LEVC (also owned by Geely) has been using an REx powertrain in its Volvo-engined TX taxi since 2017.
However, while those two firms are using combustion engines as a generator to top up a traction battery, Volvo’s new XC70 is a more conventional PHEV.
Nonetheless, the XC70 will help the firm cater to huge demand for extended-range hybrids in China, and its announcement follows the recent unveiling of the new China-oriented Volkswagen ID Era REx concept at the Shanghai motor show.
That car – similar in size to the XC70 – has been engineered in partnership with MG owner SAIC to target the burgeoning market for REx cars in China, with companies like Li Auto, Leapmotor and Avatr among the biggest players.
However, like Volvo, Volkswagen’s sales and marketing boss told Autocar that a global launch was not off the table: “Range-extenders today are already a very big thing in China. They will be of relevance in North America and we are convinced they will also have relevance in Europe.”
The XC70 has an especially important role to play for Volvo as the company embarks on a wide-reaching global cost-cutting drive in response to industry “turbulence” and a “challenging external environment”.
Even amid that turbulence, Volvo said it “remains firm on its ambition of becoming a fully electric car company”, but just a fifth of its sales in the first quarter of 2025 were electric, and it said “premium plug-in hybrids provide a pragmatic bridge for customers not yet ready to switch”.
The XC70 name had been dormant since 2016, when the off-road version of the third-generation V70 estate was taken off sale. It was originally called the V70 XC, with ‘XC’ standing for ‘Cross Country’.