The 2nd generation Volvo XC60 has been around since 2018. In that time, it received a significant update in 2022. Now in 2026, it receives another update but it still remains in its 2nd generation. So what’s new on the 2026 Volvo XC60 T8?
Performance
Engine – Nothing changes for this T8 Plug-In Hybrid powertrain for the 2026 model year. What has changed is the availability of the B6 powertrain. It’s no longer available in the XC60.
Getting back to the T8 PHEV powertrain, it consists of a 2.0L turbocharged 4-cylinder engine that delivers its power to the front wheels and an electric motor that powers the rear wheels. The electric motor produces 143 hp & 228 lb-ft of torque (88.9 kW & 309 Nm) and combined with the engine, total system output is 455 hp and 523 lb-ft of torque (282 kW & 709 Nm). This gives the Volvo XC60 T8 a 0-100 km/h time of just 4.8 seconds. That is really fast for something that tips the scales at 2,145 kg (4,731 lbs). The electric motor provides instant torque until the gas engine reaches its optimal operating rpm range. The stigma around Volvo vehicles is that they are safe but boring or slow vehicles. Not this XC60 T8. It is deceptively fast.
There are a few different drive modes. By default, the car will start in Auto Hybrid mode or, if you choose a setting in the infotainment system, it can start in Pure mode which is pure EV driving. Getting back to hybrid mode, the car will use the battery first and foremost, unless you push really hard down on the throttle pedal in which case the engine will turn on to provide more power. The electric motor however has more than enough power to get the SUV going at a reasonable pace and you can easily drive on highways with little effort.
Other drive modes are Power which will deliver maximum engine & motor performance, Off-road (which gets disabled after 40 or 50 km/h), and constant AWD which will turn on the engine and provide constant power for both the front and rear wheels. The car can also hold the battery charge for later use or use the engine to recharge the battery but that will greatly increase your fuel economy.
Battery, Range, & Charging – The battery is situated in the middle of the car where the driveshaft normally resides. No, there is no driveshaft underneath it. There is no physical connection between the front and rear. The battery is now 18.8 kWh in capacity, up from 11.1 kWh before the 2022 update. This gives the XC60 T8 Extended Range an electric only driving range of 58 km (36 Miles) as claimed by Volvo. In reality with cold temperatures and climate control running as it was during my time with the SUV, I noticed that it could drive for approximately 53 km (33 Miles). Pretty close to the claimed range.
The XC60 can only be recharged from a wall outlet or a level 2 charger. From a standard home wall outlet, it’ll take roughly 9 – 10 hours, basically overnight. From a level 2 charger, it’ll be around 3 to 4 hours depending on the speed of the charger.
Fuel Economy – Depending on how often you can plug the XC60 in and recharge it, the fuel economy can be good or really good. Driving around with the battery depleted, the 2026 Volvo XC60 T8 is rated for 8.5 L/100km (27.6 MPG) in a city and 8.5 L/100 km (27.6 MPG) on a highway.
Driving in the battery Hold mode or with a depleted battery is not quite like driving a traditional hybrid. Yes, the XC60 T8 uses the electric motor to move at speeds below 30-ish km/h but beyond that, the engine turns on. Once the car is up to speed, it’s very rare to see the engine shut off and drive on electricity for brief periods like a normal hybrid. When it does happen, you have to be extremely gentle on the throttle pedal just to maintain the speed. It’s almost impossible. As a result, I usually averaged around 8.9 L/100km (26.4 MPG) when driving with a depleted battery. During my week with the XC60, my overall fuel economy was 5.6 L/100km (42 MPG).
Transmission – The engine is paired with an 8-speed automatic transmission that provides smooth gear changes. However, they are not the fastest shifts but the electric motor fills in the gaps between shifts. So the car still accelerates midway through a shift.
Braking – The brakes of the XC60 are strong and have a firm feeling brake pedal. It doesn’t have any sort of weird light and then firm feelings like in the Mercedes C300. The XC60 also has regenerative braking and a one-pedal drive mode. The one-pedal mode provides smooth and gradual complete stops without touching the brake pedal. Just make sure to deactivate the Creep function in the infotainment system to have the full one-pedal mode. Once in a while it may require a bit of help when you’re slowing down and stopping on a downward slope.
Handling – On a winding mountain road, the Volvo XC60 is not particularly engaging to drive. The steering is light and artificial feeling. You can make it firmer through a setting in the infotainment system but it’s not the same as the steering in the BMW X3 M50 for example. But at least this SUV is easy to drive around town and it’s not going to stress you out.
Comfort
Ride Comfort – This particular demo vehicle came equipped with the optional air suspension. For the most part, the suspension effectively absorbs bigger potholes and bumps in the road. However, it’s smaller, quick road imperfections that get translated through the suspension and into the seat. At times, the ride of the XC60 with the air suspension is not as plush as the ride of the Genesis GV70 for example. But at least the air suspension does allow for easy entry and exit by lowering when stopped.
Interior Space – The 2026 Volvo XC60 T8 has the least amount of headroom among its closest competitors; the BMW X3 and Mercedes-Benz GLC 350e. However, it has more legroom than both for front and rear passengers. For my 6’4” height, I had no issues in the front seats and space was Ok behind my tall driving position. My knees gently touched the rear of the front seat. However, if you are relegated to the center seat, you have to contend with a large center hump.
With this being a plug-in hybrid, the cargo capacity has not taken a big hit when compared to the non-PHEV versions of the XC60. It has 598 L (21.1 cu-ft) of space with the rear seats up which is only 15 L less than the non-hybrid XC60. With the rear seats folded, it only has 1,395 L (49.3 cu-ft) which again is less than the non-hybrid version but quite a bit less than the BMW X3 and Mercedes GLC at 1,700 and 1,530 L respectively. If equipped with the air suspension though, the rear can lower for easier loading or unloading of the trunk.
Noise, Vibration, & Harshness – The cabin of the XC60 T8 is quiet. Obviously when the electric motor is providing the power, there’s only a faint whisper of tire noise that is audible in the car. When the engine has to turn on, the transition is seamless. As well, the engine itself is pretty quiet when it’s not working too hard. Under more moderate or hard acceleration, it can get quite noisy.
Odds and Ends
Pricing – Unlike most other new vehicles, the starting price of the 2026 Volvo XC60 T8 has not changed since 2022. It still starts at $64,950 CAD. Unfortunately for the United States market, it has gone up to $61,150 USD. The demo car I drove was the Ultra trim which starts at $83,200 CAD ($70,950 USD) and it only has a few packages to add in order to make it a fully loaded SUV.
Gadgets – Speaking of which, the XC60 soft Nappa leather upholstery, heated & ventilated front seats, heated rear seats, heated steering wheel, panoramic sunroof, hands-free power liftgate, surround view cameras, head-up display, Pilot Assist semi-autonomous drive, blind spot sensors, Bowers & Wilkins sound system for almost $4,000 CAD ($3,200 USD), and many more features. It can also be equipped with front massaging seats for $1,300 CAD ($600 USD) but this demo car did not have this feature.
The biggest update to this 2026 Volvo XC60 is the new infotainment touchscreen. It measures 11.2-inches and it displays an updated infotainment system. The four tiles of the older system are gone and now Google Maps is the default home screen. The bottom left icon displays all of the built in apps while the bottom right icon displays the vehicle settings. Of course, climate controls are still integrated into the touchscreen but at least you can change the temperature by using voice commands.
Interior Design – Apart from the new touchscreen, the interior remains largely unchanged. Real wood and aluminum trim cover parts of the dashboard and center console while soft leather covers the rest. I do like Volvo’s use of carpet up the side of the center console as it reduces the use of hard plastics and gives the cabin a premium feel.
Exterior Design – The front of the 2026 Volvo XC60 T8 has the most distinct change when compared to the 2025 model year. It has a new grille and new wheel designs that range from 20-inches to 22-inches. Other than that, the front bumper looks the same as before as does the rear fascia.
Safety – The Core XC60 (base) has nearly every safety and driver aid feature. Moving up to the Plus level will add Pilot Assist with adaptive cruise control, surround view cameras, and front, rear, and side parking sensors. Every other feature like blind spot sensors, automatic emergency braking, lane keep and so on are all standard.
Warranty – The 2026 Volvo XC60 T8 has a similar warranty period to its German rivals. It comes with a 4 year / 80,000 km new vehicle and powertrain warranty. Unlike previous experiences with Volvo vehicles, I have not had any issues with this XC60.
Conclusion – Although the Volvo XC60 has been around in this generation since 2018, it can still hold its own against the new breed of luxury crossover SUVs. It may not have the longest EV range nor the most spacious cabin but it’s priced lower, the powertrain produces more power, and it still has an elegant design.
Thank you to Volvo Cars Canada for providing the XC60 T8. www.VolvoCars.com
2026 Volvo XC60 T8 Gallery
