Volvo will introduce a new budget-friendly electric vehicle to take the place of the canceled EX30.

The compact EX30 was intended to be Volvo's main electric vehicle in the U.S. However, tariffs increased its price, leading to strategic changes. In March, the Swedish manufacturer removed the stylish little EV from its U.S. offerings. Nevertheless, Americans won’t be without an entry-level Volvo EV for long, as a successor is already in development and will be priced similarly to the EX30.

Luis Rezende, president of Volvo Cars America, informed reporters on Monday that a new car is on its way, with a price point close to the previous model, though not identical.

Details about the new vehicle are limited at this time. Rezende mentioned it will debut next year and will be larger than the EX30. He assured that it would be an enjoyable driving experience in a more spacious design.

Initially, the EX30 was priced at $35,000 in the U.S., but it launched at over $45,000. A more affordable single motor version was later introduced at $40,000.

The new vehicle might be a next-generation EX40 built on the recently introduced EX60’s SPA3 platform. Currently, the EX40 is based on a modified combustion engine platform and costs around $16,000 more in the U.S. than the base EX30.

Anders Bell, Volvo Cars' chief engineering and technology officer, emphasized the flexibility of the SPA3 platform. It is designed to accommodate all segments, from subcompact to luxury.

Bell explained that automakers typically require three platforms for various segments due to the complexities of gas vehicles. By eliminating the combustion engine, Volvo can achieve new levels of modularity and scalability. This means standard battery types, shared software, and consistent electrical architecture, allowing them to scale across all segments without compromise.

The EX60 made its U.S. debut on Monday, with orders now open and deliveries anticipated to begin in late summer. It is Volvo's most advanced vehicle to date, boasting solid pricing. If the company can adapt this technical foundation into a smaller, more affordable model, the upcoming entry-level EV could be significantly more appealing than its predecessor.