Volvo Considering Larger Hybrid SUV to Rival BMW X7 and Mercedes-Benz GLS

New three-row SUV model planned to sit above Volvo's current XC90 and EX90 offerings.

Jan. 28, 2026 at 10:39am

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According to a report, Volvo is considering developing a large, three-row hybrid SUV that would sit above its current XC90 and EX90 models to meet growing demand for 'F-segment' SUVs in key markets like the United States and China. The new SUV could potentially be built at Volvo's Charleston, South Carolina plant and share underpinnings with models from Geely, Volvo's parent company.

Why it matters

Volvo's current three-row SUV offerings, the XC90 and EX90, are relatively smaller compared to ultra-large luxury SUVs like the BMW X7 and Mercedes-Benz GLS. Developing a larger hybrid SUV model could help Volvo better compete in this growing segment, especially in the crucial US and Chinese markets.

The details

Volvo CEO Håkan Samuelsson confirmed the company is considering a new large, three-row SUV model to sit above the XC90 and EX90. While details are limited, Samuelsson noted that customers in certain markets may still prefer a hybrid powertrain over a fully electric vehicle for the next few years. The new SUV could potentially be built at Volvo's Charleston, South Carolina plant, which currently produces the XC90 and EX90.

  • Volvo is currently considering the new large SUV model.

The players

Volvo

A Swedish automotive manufacturer and a subsidiary of Geely Automobile.

Håkan Samuelsson

The CEO and president of Volvo.

BMW X7

A large luxury SUV model produced by the German automaker BMW.

Mercedes-Benz GLS

A large luxury SUV model produced by the German automaker Mercedes-Benz.

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What they’re saying

“Especially in China and the US, the real three-row SUV is a growing segment and an interesting segment, but so far we have the [EX and XC]90 which covers the three-row [SUV market].”

— Håkan Samuelsson, CEO and president of Volvo

“If we start building a car there, it will be a very attractive car for the US market and US customers.”

— Håkan Samuelsson, CEO and president of Volvo

What’s next

Volvo has not yet confirmed any specific timeline or details for the development of the larger, three-row hybrid SUV model.

The takeaway

Volvo's consideration of a new larger SUV model to compete with the BMW X7 and Mercedes-Benz GLS highlights the growing demand for ultra-large luxury SUVs, especially in key markets like the United States and China. The potential hybrid powertrain option also suggests Volvo is aiming to balance customer preferences for the time being.