√Volvo trims petrol models in Australia in electric-car push, increases prices

Prices have risen across most Volvo models in Australia as the line-up of petrol variants is trimmed.

Chinese-owned Swedish car-maker Volvo has trimmed its range of petrol-powered options as electric vehicles account for a record share of the model mix – and increased prices.

The top petrol engines have been deleted from Volvo’s two top sellers – the XC40 small and XC60 mid-size SUVs – in an Australia-specific move said to be “in readiness for our all-electric strategy”, a company spokesperson said.

At the same time it has added a second plug-in hybrid version of the XC60 – and added more features as standard across most models, for price rises of up to $5500.

Nearly half of Volvo cars reported as sold last month were electric – despite selling just two battery-powered cars, based on the XC40 and C40 – and Volvo Australia plans to end sales of petrol cars in 2026.

2023 XC60 Recharge Ultimate T8 Plug-in Hybrid.

There remains three mild-hybrid petrol model grades in the XC40 line-up – Plus, Ultimate Bright and Ultimate Dark – but every model is now powered by the 145kW ‘B4’ engine, with the 183kW ‘B5’ engine previously fitted to the Ultimate Dark no longer available.

The less powerful, 2024 model-year (MY24) XC40 Ultimate B4 Dark is $2000 cheaper than its predecessor – but the Plus B4 and Ultimate B4 Bright have received price rises of $1500 to coincide with extra equipment.

Meanwhile the petrol XC60 range has been cut to the Plus B5 and Ultimate B5 Bright, as the XC60 Ultimate Dark B6 – with a more powerful 220kW turbo engine – has been axed.

In its place Volvo has introduced a cheaper plug-in hybrid variant – branded Recharge Plus T8 Plug-in Hybrid – priced from $92,990 plus on-road costs, to sit below the existing Ultimate T8 Plug-in Hybrid priced from $101,990 plus on-road costs (price unchanged for MY24).

Compared to the more expensive plug-in hybrid (PHEV), the cheaper variant wears 20-inch wheels (rather than 21s), and loses a Bowers and Wilkins premium sound system, panoramic sunroof, adaptive air suspension, heated front seats, a heated steering wheel, head-up display, crystal gear selector, and a metal-look boot sill plate.

It is powered by the same 2.0-litre turbo four-cylinder petrol engine and electric motor developing 340kW and 709Nm combined, with an 18.8kWh battery good for 81km of claimed electric driving range.

Prices have risen across most other Volvo models in Australia by up to $5500 for Model Year 2024 vehicles arriving now.

It is the second price rise this year, after most models became up to $4000 more expensive on January 1, with no extra equipment.

The V60 Cross Country Ultimate B5 Bright wagon (now $74,990 plus on-road costs) has received the headline increase, but gains a Harman Kardon premium sound system, and panoramic sunroof as standard.

The S60 Ultimate B5 Bright sedan is up $3000 to $69,990 plus on-roads, due in part to the addition of the Harman Kardon stereo as standard equipment.

A $1500 price hike has been applied to all three petrol XC40 models, with the Plus B4 gaining an air purifier, and the Ultimate B4 Bright and Ultimate B4 Dark gaining a heated steering wheel, heated front and rear seats, and ‘Pixel’ matrix LED headlights.

Price rises of $3000 to $4500 have been applied to the XC40 and C40 Recharge electric cars as part of a mechanical update announced a few months ago, which sees bigger batteries and new electric motors added, among other changes. Click here for more details.

The base XC60 Plus B5 gains an air purifier as part of a $1000 price rise, while the same increase applied to the Ultimate B5 Bright adds a Harman Kardon premium sound system.

Volvo’s largest vehicle, the XC90, has received price rises of up to $3000 across a three-model range that sees the base Plus B5 and better-equipped Ultimate B6 Dark deleted, and a new Ultimate B5 Bright model added.