For a moment, it looked as though we’d seen the last of the XC90. Back in 2022, at the launch of the C40, the brand’s first dedicated EV, Volvo Car Australia announced it would jump the gun on global targets and go all-electric for our market by 2026.
The launch of the EX90 earlier this year only looked to bring the end of the chapter for the XC90 and the brand’s other internal combustion models. Then, lo and behold, it was announced that a completely refreshed model was headed for Australia.
Given the second-generation XC90 has been on sale for a decade, this marks the biggest upgrade for the model yet. To get a first taste of it, we headed to the Southern Highlands in rural New South Wales, where Volvo also presented the ES90 and EX30 Cross Country.
The range has been trimmed down, with only two variants on offer, both in lavish Ultra trim. The mild hybrid B5 Bright will set you back $104,990 before on-roads, a $5050 increase, while the T8 Plug-in Hybrid is now priced from $130,990, a $2600 increase.
That places it in the middle of the EX90’s price range. Aside from the doors, virtually every panel of the 2026 XC90 is now completely new. While the overall look is still familiar, it’s clearly the case upon closer inspection.
Up front, the most instantly obvious change are the updated ‘Thor’s hammer’ headlights, while the grille has been completely redesigned, matching what you’ll also see on the front of the XC60.
At the rear, things remain more familiar, with it treated to a subtle nip and tuck and updated LED taillights. There are new 21-inch and 22-inch wheel designs depending on the variant you go for.
Inside, the dashboard has been completely redesigned with a “more horizontal shape”, as seen in the introduction of redesigned air vents along with new trim inlays made from recycled materials.
The centre console has also been overhauled to offer more storage space, new cupholders, and a repositioned wireless smartphone charger. The latter will no longer send your phone flying when you give it the beans.
Headlining the interior changes, however, is a new 11.2-inch touchscreen, which replaces the old 9.0-inch unit previously seen across the entire Volvo lineup. It features the latest Snapdragon Cockpit operating system.
That adds inbuilt Google connectivity and claims to be more than twice as fast as the previous Android Automotive OS. Existing owners of pre-facelift XC90s and other Volvos won’t miss out on it either, as the new OS is being rolled out as a free over-the-air update.
Given both variants come in Ultra guise, the list of standard features is extensive. A 12-inch digital instrument cluster, power-adjustable seats with memory function, an Orrefors crystal gear lever, ambient interior lighting and a head-up display are all included.
There’s automatic wipers, a 360-degree camera, and adaptive cruise control with ‘Pilot Assist’ semi-autonomous driving as standard on all XC90s. Stepping up to the T8 Plug-in Hybrid also adds adaptive air suspension and a premium Bowers & Wilkins audio system.
That’s alongside a panoramic sunroof, rear privacy glass, and black trim for items such as the front grille, mirror caps, and roof rails. Some of these items are optionally available on the B5, while the T8’s only option is a front seat massage function.
As you’d expect from Volvo, the interior ergonomics are excellent, with some of the most comfortable and supportive seating we’ve experienced. The driving position is ideal, and an inbuilt booster seat in the middle of the second row makes it more family friendly.
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The new infotainment system, also introduced to the XC60, is a marked upgrade over the old one. With higher resolution and much improved responsiveness, the convenience of Google Maps as the default navigation system is a big advantage when destination hunting.
Not only are locations far easier to find, but you’ll also see details such as opening hours listed as well. During the one-day launch program, we only had the chance to drive the Ultra T8 Plug-in Hybrid model, but were able to cover about 200km in it.
Our drive route consisted mainly of highway driving, but also included short stints on gravel and in city conditions near Sydney airport. The lesser B5 features a 2.0-litre turbocharged petrol engine and 48V mild hybrid system producing 183kW and 350Nm.
That’s good for 0-100km/h in 7.7 seconds, but the T8 is a far more complex beast. Up front, you’ll still find a 2.0-litre four-pot, but it gains a supercharger to deliver 233kW and 400Nm to the front wheels via an eight-speed automatic transmission.
Then, an electric motor delivers 107kW/309Nm exclusively to the rear wheels, with an 18.8kWh battery pack providing a claimed 70km pure electric range on the WLTP cycle. Combined, the system delivers 340kW and a 0-100km/h sprint time of just 5.3 seconds.
Due to this unique arrangement, it means it can run as a petrol-only front-wheel drive, electric-only rear-wheel drive, or hybrid all-wheel drive. This allows the EV component to deliver power to the rear wheels, filling the brief gap during shifts by the front axle’s auto.
For as complex as it may sound, the system is very refined and intuitive. The engine remains fittingly muted when active – even in the more demanding ‘Charge’ mode where it will act as a generator for the battery pack – and gearshifts are virtually undetectable.
When you give it some welly, there’s plenty of performance on offer as well. Indeed, for a three-row luxury SUV riding on air, the XC90 has long been very pleasing dynamically. The steering is light and responsive even in its ‘Firm’ setting.
The chassis is impressively composed too, and the updated suspension only provides an even more balanced ride. In every respect, this is a brilliantly refined vehicle. Although the price has gone up, the XC90 still remains competitively priced for a luxury three-row SUV.
Despite this platform’s age, it’s also still one of the best to drive. Plus, even if the 70km of pure electric range doesn’t sound quite as impressive compared to some other PHEVs, it’s still more than enough for city commuting.
That said, nightly charging will be required to get the best out of it. For peace of mind, the XC90 is covered by a 5-year unlimited kilometre warranty, while the T8 also benefits from an 8-year or 160,000km hybrid battery warranty.
There’s up to 8-years of roadside assistance. Two pre-paid service packs are on offer, one for the first three years or 45,000km which costs $2380, or 5-years or 75,000km coverage for $3870. Servicing is required every 12 months/15,000km.
Do also note that while Volvo claims fuel consumption of 1.8-litres/100km for the T8, the nature of the drive route meant we were unable to adequately test how possible that is in daily driving conditions.
But if you’re looking for a truly luxurious SUV at this price point, with the added flexibility of a plug-in powertrain, the XC90 is an option that should still be right at the top of the shortlist, even a decade on.
You can find out more on the Volvo Cars Australia website, or by talking to your local dealership. To get a low rate finance quote, talk to Australia’s best reviewed car finance broker; Credit One. To see a great range of vehicles for sale, check out OnlyCars.com.au.
Our test vehicle was provided as part of a one-day Volvo Car Australia launch event.
