Volvo Cars is developing a new affordable electric vehicle to replace the discontinued EX30 in the U.S. market [1].
The move comes as the company attempts to regain a foothold in the entry-level EV segment. The EX30 was intended to attract budget-conscious buyers, but pricing volatility and tariffs made that goal unattainable.
The EX30 was originally intended to have a starting price of $35,000 [2]. However, tariffs caused the actual cost to rise above that level [2]. This pricing instability, combined with weak sales, led to the model's discontinuation [3].
Volvo is now working on a replacement that aims to address these previous failures [1]. While some reports suggest the new vehicle will maintain a familiar price point [4], other sources indicate it may not match the original $35,000 target of the EX30 [2]. The company is also planning for the new model to have a larger footprint than its predecessor [4].
This development follows the recent launch of the EX60, which occurred on Monday, May 19, 2026 [3]. By diversifying its electric lineup, Volvo hopes to stabilize its presence in North America.
The company expects to launch the new affordable EV in 2027 [1]. This timeline allows the automaker to navigate current trade complexities, and refine the vehicle's cost structure before it hits U.S. roads [1].
“Volvo is developing a new affordable electric vehicle to replace the discontinued EX30 in the U.S. market”
Volvo's shift indicates a strategic pivot to avoid the tariff-driven pricing traps that killed the EX30. By adjusting the vehicle's footprint and price target, the company is attempting to balance the demand for affordable electrification with the reality of international trade costs and U.S. import duties.
