Rising costs, market conditions blamed for Volvo Cars’ 2026 price hike [update]

A leaked 2026 order guide shows the price on several Volvo models going up by nearly 6%. That’s thousands of dollars on some models – along with higher destination charges, fewer discounts, and precious little in the way of new tech or features to justify the price hike.

UPDATE: Volvo Cars has a response.

When we originally published this article a few days ago, we I commented that customers being saddled with the across-the-line price increases coming to Volvo dealers in 2026 would get “precious little” in return for those extra dollars.

Volvo Cars apparently disagrees, and a Volvo rep reached out via email to share some background on the changing prices. “We evaluate every aspect of our business in pricing decisions, in line with our standard practice,” they wrote. “For MY26, we have made significant upgrades to the in-car technology across our lineup, as well as major improvements to our top-selling XC60 in the areas that matter most to our customers. These upgrades are reflected in the new price structure, along with price increases driven by challenging current market conditions.”

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I asked if they could specify what some of the “significant upgrades to the in-car technology across our lineup” were.

“You’ll be able to see more about the upgrades in our (02JUN2025) press release,” came the reply. “Some major ones include the introduction of the next-generation Snapdragon® Cockpit Platform from Qualcomm Technologies, which Google Android Automotive-based infotainment system to run more than twice as fast as outgoing models.”

You can check out the press release for yourself at the link, then let us know whether or not having a touchscreen that’s twice as fast as the one you have now is worth as much as $3,200 to you in the comments.

Original post, below.

CarsDirect is reporting that Volvo Cars is raising US prices across the board by as much as 6% for the coming year, translating to a $3,200 price increases on some of the Swedish brands’ most popular plug-in SUVs and crossovers.

Based on what we’ve seen so far, the 2026 Volvo XC90 appears to have the largest price hike of $3,200 on the plug-in hybrid variant. The XC90 T8 Core PHEV has an MSRP of $76,200, excluding destination, $3,200 more than the current price tag of $73,000. That represents a 4.4% price hike compared to the 2025.5 plug-in.

In the case of the 2026 Volvo XC60, we found a 5.6% price increase on the base model, which is going up $2,650 from $47,050 to $49,700. On average, we’re seeing a 4.2% price hike on the Volvo V60, V90, XC40, XC60, and XC90, depending on the trim level, with the increases ranging anywhere from $1,800 to $3,200.

CARS DIRECT

It gets worse for new Volvo buyers. The company began quietly cancelling rebates and dialing back financing incentives last month, after the Trump Administration announced new, sweeping tariffs on imported cars this past April.

For its part, Volvo Cars doesn’t seem to be blaming these new price increases on the tariffs themselves, citing rising costs and market conditions instead. That said, those tariffs have undoubtedly influenced the company’s decisions and market plans – especially those regarding the all-new XC70 and 2025.5 S90 PHEV models as well as the new ES90 battery-electric sedan.

Volvo isn’t the only brand raising prices. BMW will increase prices starting 01JULY by about 2%, and Ford raised prices on cars and trucks made in Mexico by about $2,000 last month.

If you’re in the market for a new Volvo XC90 PHEV or EX90 EV and want to avoid the 2026 price increases, it doesn’t look like there are many tangible differences coming (the XC60, to Volvo’s credit, will be getting a series of updates similar to those on the well-received 2025.5 XC90 for 2026). You can find local deals on those models, below.

SOURCES: CarsDirect; featured image by Volvo Cars.

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