The 2026 Volvo XC60 has arrived, bringing a refreshed look, enhanced technology, and a refined driving experience to the compact luxury SUV segment. As Volvo’s best-selling model globally since its second-generation debut in 2017, the XC60 continues to captivate buyers with its Scandinavian design, premium comfort, and innovative features. This mid-cycle refresh introduces subtle exterior updates, a significantly upgraded infotainment system, and enhanced interior materials, ensuring the XC60 remains competitive against rivals like the BMW X3, Audi Q5, and Mercedes-Benz GLC. With prices starting at approximately $48,000 for the mild-hybrid B5 and $59,000 for the T8 Plug-in Hybrid (PHEV) in the U.S., and a range of $74,990 to $101,990 before on-road costs in Australia, the 2026 XC60 offers a compelling blend of luxury, efficiency, and technology.
This article delves into the key updates for the 2026 Volvo XC60, including its pricing, design enhancements, technology upgrades, powertrain options, and how it stacks up in the competitive luxury SUV market.
Pricing and Trim Levels
The 2026 Volvo XC60 sees a modest price increase over its predecessor, reflecting the added technology and refined materials. In Australia, the lineup consists of four trims, with prices starting at $74,990 for the Plus B5 Bright and topping out at $101,990 for the Ultra T8 Plug-in Hybrid Dark (before on-road costs). Compared to the 2025 model, prices have risen by $600 to $1,900 depending on the variant, a change Volvo justifies with the inclusion of advanced tech and premium cabin upgrades.
In the U.S., while exact pricing for 2026 has not been finalized, estimates suggest the B5 mild-hybrid models will start around $48,000, and the T8 PHEV models around $59,000, aligning closely with the 2025 model’s starting prices of $48,345 and $59,395, respectively. The following table outlines the Australian pricing for the 2026 XC60 lineup:
|
Trim |
Price (AUD, before on-road costs) |
Powertrain |
|---|---|---|
|
Plus B5 Bright |
$74,990 |
2.0L Turbo Mild-Hybrid (183kW/350Nm) |
|
Plus B5 Dark |
$78,990 |
2.0L Turbo Mild-Hybrid (183kW/350Nm) |
|
Ultra B5 Dark |
$86,990 |
2.0L Turbo Mild-Hybrid (183kW/350Nm) |
|
Ultra T8 Plug-in Hybrid Dark |
$101,990 |
2.0L Turbo PHEV (233kW/400Nm + 107kW/309Nm electric motor) |
Note: U.S. pricing is estimated and subject to change. Contact local dealers for precise figures.
The price increase is offset by an “exhaustive list of standard features,” including power front seats with memory, adaptive cruise control, and front/rear park assist. The Ultra trims add luxury touches like adaptive air suspension and laminated windows for a quieter cabin.
Exterior Design Updates
The 2026 XC60 undergoes a subtle yet effective exterior refresh, aligning its styling with Volvo’s flagship XC90. The most noticeable change is the new front grille, featuring diagonal slats and the iconic Volvo iron mark, giving the SUV a more contemporary and sophisticated appearance. New alloy wheel designs and darkened LED taillights further enhance the XC60’s aesthetic, while three new exterior colors—Forest Lake, Aurora Silver, and Mulberry Red—offer fresh personalization options. These updates, though not a full redesign, ensure the XC60 remains visually competitive in a segment where style is paramount.
While some critics note that the changes are minimal—lacking new bumpers or body panels—the XC60’s Scandinavian design, with its Thor’s Hammer headlamps and sleek silhouette, continues to age gracefully. The new Y-shaped wheel spoke pattern, with alternating gloss black and machined silver surfaces, adds a modern flair to the SUV’s profile. For buyers seeking a bolder look, the Black Edition package introduces unique black wheels and exterior trim, enhancing the XC60’s visual impact.
Interior Enhancements and Comfort
Inside, the 2026 XC60 elevates its already luxurious cabin with premium materials and practical upgrades. New upholstery options, such as Quilted Nordico and Navy Herringbone Weave, add a refined touch, while updated interior decors and inlays enhance the Scandinavian aesthetic. Practical additions include redesigned cupholders, smarter storage solutions, and an improved wireless phone charger, addressing user feedback for better usability.
Volvo has prioritized comfort with undisclosed improvements to sound deadening and chassis tuning, making the cabin quieter and the ride smoother. Optional laminated windows and adaptive air suspension further reduce noise and enhance ride quality, creating a serene driving environment. An advanced air purification system is also available, filtering out pollutants and allergens to improve cabin air quality, a feature particularly appealing for health-conscious buyers.
The Bowers & Wilkins High Fidelity audio system, with redesigned speaker mesh, transforms the cabin into a concert hall on wheels, delivering exceptional sound clarity. These enhancements, combined with Volvo’s renowned seat comfort, make the XC60 a standout for long-distance comfort and daily practicality.
Technology Upgrades
The centerpiece of the 2026 XC60’s refresh is its upgraded infotainment system, powered by Qualcomm’s next-generation Snapdragon Cockpit Platform. The system features a larger 11.2-inch touchscreen, up from the previous 9.0-inch display, with a 21% higher pixel density for crisper visuals. Volvo claims the new system is twice as fast as its predecessor, with graphics rendering ten times quicker, ensuring a more responsive and intuitive user experience. Integrated Google services, including Google Maps, Google Assistant, and Google Play, remain standard, with up to four years of subscription access included.
Wireless Apple CarPlay and Android Auto are now standard, addressing a key demand from tech-savvy buyers. Over-the-air (OTA) updates ensure the XC60’s software stays current, with Volvo extending this capability to models as far back as 2020, benefiting approximately 35,000 Canadian customers. The 12.0-inch driver display carries over unchanged, maintaining its clear and functional design.
Powertrain Options
The 2026 XC60 retains its proven powertrains, offering a balance of performance and efficiency. The B5 mild-hybrid features a 2.0-liter turbocharged four-cylinder engine with a 48V starter-generator, producing 247 horsepower (183kW) and 266 lb-ft (350Nm) of torque. Paired with an eight-speed automatic and standard all-wheel drive, it achieves 0-60 mph in approximately 6.8 seconds, with fuel economy rated at 23/30 mpg city/highway and a range of 489 miles.
The T8 Plug-in Hybrid combines a 233kW/400Nm 2.0-liter turbo engine with a 107kW/309Nm electric motor and an 18.8-kWh battery, delivering a combined 455 horsepower and 523 lb-ft of torque. It offers 36 miles of electric-only range, 63 mpg-e combined, and a total range of 560 miles. While rivals like the Lexus NX450h+ achieve slightly better efficiency (84 mpg-e, 37 miles electric range), the XC60 T8’s performance and refinement make it a strong contender.
Competitive Positioning
The XC60 faces stiff competition from the BMW X3, Audi Q5, Mercedes-Benz GLC, and Lexus NX. While it may not match the athleticism of the X3 or the cargo space of the Q5, the XC60 excels in comfort, safety, and distinctive design. Its Google-based infotainment system, though less intuitive than some rivals, is now significantly faster, addressing previous criticisms. The XC60’s spacious rear legroom and generous cargo capacity give it an edge over the Lexus NX and Genesis GV70, while its safety features, including standard adaptive cruise control and semi-autonomous parking, reinforce Volvo’s reputation for prioritizing driver and passenger safety.
The upcoming EX60, an all-electric counterpart arriving in 2026, will offer a modern platform and distinct design, but the XC60’s blend of mild-hybrid and PHEV options ensures it remains relevant for buyers seeking efficiency without fully committing to electric.
Market Availability and Ownership Benefits
The 2026 XC60 is already available to order in select markets, including Australia, with deliveries expected in the third quarter of 2025 (July-September). North American availability and pricing details are forthcoming, but Volvo has indicated a release later in 2025 as a 2025.5 or 2026 model.
Volvo offers a robust ownership package, including a 4-year/80,000-km basic warranty, a 5-year/100,000-km powertrain warranty, and a 12-year anti-corrosion warranty. Complimentary factory-scheduled maintenance and roadside assistance further enhance the ownership experience. The XC60’s residual value, estimated at 52% after five years ($32,029), is competitive among luxury SUVs, making it a smart long-term investment.
Final Words
The 2026 Volvo XC60 solidifies its position as a top contender in the compact luxury SUV segment with a thoughtful mid-cycle refresh. Its updated grille, new color options, and refined interior maintain its Scandinavian charm, while the upgraded infotainment system and enhanced comfort features elevate the driving experience. With competitive pricing, robust powertrain options, and a focus on safety and technology, the XC60 continues to appeal to buyers seeking a stylish, practical, and luxurious SUV. As Volvo prepares to launch the all-electric EX60 in 2026, the XC60 remains a versatile choice for those who value efficiency, comfort, and timeless design. For the latest updates or to schedule a test drive, contact your local Volvo dealer.