Volvo has heavily reworked the hugely successful XC90 SUV with a number of “fundamental changes”, including design and technology updates inspired by its new electric EX90 sibling.

The second iteration of the BMW X5 and Audi Q7 rival arrived in 2014, since when Volvo has sold close to a million examples of the large luxury SUV.

This new car is effectively a significant development of that model, sitting on the same SPA1 platform and retaining a choice of a plug-in hybrid and two mild-hybrid four-wheel-drive powertrains.

It comes as Volvo seeks additional flexibility amid the transition to electric cars.

The Swedish company had previously pledged to sell only EVs from 2030, but with the slowdown in the growth of the EV market, CEO Jim Rowan has now suggested that it could continue to sell some hybrid models after that date.

Rowan said: “We are not dogmatic about our 2030 ambitions. Most important is that we provide products that our customers want. We will be ready to go fully electric this decade, but if the market infrastructure and customer acceptance is not quite there, we can allow that to take a few more years.

“The transition to electrification will not be linear. Customers and markets are moving at different speeds, and therefore we will continue to invest in our hybrids so that wherever you are in your journey to electric driving, you can have a Volvo to suit your needs and your situations.” 

Rowan added that the EX90 – first examples of which are now being shipped to customers – and updated XC90 would “provide customers with the options that best suit them” while giving Volvo “a balanced portfolio as we continue our transition towards full electrification".

The XC90 range will continue to be headed by the T8 PHEV, which twins a 306bhp four-cylinder turbo petrol engine with a 143bhp permanent magnet synchronous electric motor.

The T8 offers an electric-only range of 44 miles and its 14.7kWh (total) battery can be fully charged in around three hours on an AC connection.

The two mild hybrids use a four-cylinder turbo petrol engine mated to an integrated starter-generator. tThe entry-level B5 makes 247bhp, while an e-supercharger lifts the B6 to 296bhp.

Volvo said that it has reworked the MHEV engines to use the Miller combustion cycle to optimise their fuel efficiency. The B5 has official fuel economy of 33.2mpg and the B6 of 31.7mpg.

Extra sound insulation has been added to the XC90 to make its ride quieter, while Volvo has also revised the standard suspension, with a new double-wishbone arrangement up front, an integral link at the rear and frequency-selective damping.

Volvo claims the new arrangement improves ride comfort and boosts stability. Electronically controlled air suspension will remain an option, using a system that scans the road 500 times per second.

The exterior of the XC90 has been restyled to bring it more closely in line with the EX90 and other recent Volvo models. That includes a revised engine grille, ‘Thor’s hammer’ headlights, new wheels (sizes range from 20 to 22in) and revised rear lights.

The cabin has also received a light makeover, again inspired by the EX90, with a new horizontal design and the use of more textured materials, including the option of ‘responsibly produced’ Nordico and Herringbone Weave upholstery.

The centre console has been reworked and now features a ‘2+1’ cupholder (which has room for an additional slim drinks can) and a new wireless smartphone charger.

The biggest interior change is the new 11.2in touchscreen, which replaces a 9in item. It's of higher resolution and uses the same Google-based software as the EX90, allowing for over-the-air updates.

Volvo also claimed the reworked operating system means it requires fewer presses to access key functions.

The XC90 will continue to be offered with five, six or seven seats.

There's 680 litres of space behind the second row in the mild hybrids or 640 litres in the PHEV. With the third row in place, there's 302 and 262 litres of space respectively.

Production of the new XC90 is due to start later this year, with first deliveries due in certain markets before the end of the year.

There's no word yet on UK pricing, but the current model starts at £69,435 as an MHEV or £71,405 as a PHEV.