Volvo XC90 Ultra T8 AWD PHEV 2026 Review

Priced from $130,990 plus on-road costs, the 2026 Volvo XC90 Ultra T8 AWD PHEV is the most expensive Volvo model you can buy with an internal combustion engine and, fittingly, it comes loaded to the roof lining with equipment.

There’s honestly too much to try and list in this quick spin, but the headline gear includes 22-inch alloy wheels, Nappa leather upholstery, keyless entry and start, height-adjustable adaptive air suspension, an Android Automotive 11.2-inch infotainment system, auto-dimming mirrors, a 12.3-inch digital instrument display, four-zone climate control, adaptive cruise control, a head-up display, panoramic roof, a 19-speaker Bowers & Wilkins audio system, power-adjustable seat bolsters, a heated steering wheel and black exterior treatment.

That Android-powered infotainment system offers Google built-in – meaning Google Maps is the native sat-nav – but doesn’t offer wireless Apple CarPlay; you’ll need a cable to connect your iPhone.

Don’t be mistaken or misled by an ill-informed sense of badge hierarchy, this is very much a direct rival for the BMW X5, Audi Q7 and Mercedes-Benz GLE in every sense, but the big Swede smashes its German competition on the value front once the powertrain is factored in.

Powering the XC90 Ultra T8 AWD PHEV is a turbocharged 2.0-litre four-cylinder plug-in hybrid system good for a combined 340kW/709Nm, 0-100km/h in a claimed 5.3 seconds and up to 77km of emissions-free driving – thanks to the 19kWh battery pack.

The claimed average fuel consumption is 1.8 litres per 100km on the combined cycle, and whole thing operates through an eight-speed automatic transmission with power sent to all four wheels.

As for the SUV factor, the topflight XC90 will carry seven people across three rows with 262 litres of boot space available behind the third row.

Stow it and you’ve got 640L available, growing to 1816L when the 40:20:40 split-folding middle seats are stashed.

Unusually for a monocoque hybrid or plug-in hybrid, the braked towing capacity is rather respectable at 2400kg.

If you were to ask someone their top three picks for a large luxury SUV, odds are they’d reel off German marques before possibly throwing in Lexus – Volvo seems to live in BMW, Audi and Mercedes-Benz’s shadow in that respect.

But the 2026 XC90 Ultra T8 AWD PHEV is proof that it shouldn’t. This is a beautifully executed luxury SUV in just about every regard.

It’s a classy looking bus from most angles without being overtly handsome – the old model looks better from the outside – with the same true of the minimalist interior.

As you’d hope from a $130,000 luxury SUV, all the cabin materials and touchpoints are high-quality, as is the portrait 11.2-inch infotainment system which proved snappy to respond and crisp to look at, even if the graphics are starting to look a little dated.

It’s largely a similar story with the 12.3-inch digital instrument cluster which shows you just the right amount of information rather than bombarding you with readouts and metrics like some of the competition does.

The second-row backrests fold in a 40:20:40 fashion which can be both a blessing and a hindrance; on one hand you’ve technically got more configurability (reclining included), and on the other you’ve got an extra seat to fold down, adding another step to the loading process.

Either way, there’s plenty of room for adults in the second row and heaps of amenities: three sets of directional air-vents, a dedicated dual-zone climate control panel, heated outboard seats, USB-C ports, map pockets, bottle holders in the doors, a flip-down armrest with cupholders and a middle-seat booster system.

The third row’s respectable too, but where the XC90 really shines is on the move.

The Ultra T8 AWD PHEV rides on four-mode, height-adjustable air suspension as standard and offers one of the best SUV ride-handling balances I’ve experienced yet.

An increasing number of challenger and mainstream brands make a fuss of their Australian-focussed this or locally-tuned that, while other upmarket makes ship us their Euro or North American-prioritised models and call it a day – which don’t always suit our unique road conditions.

It’s so refreshing to get into a luxury vehicle that rides and handles almost flawlessly straight out of the box, even on 22-inch wheels.

The XC90 doesn’t float, bob or wallow over country roads in its comfiest setting, nor does it compress your spine in sport mode – it just gets on with the job of ironing out the bumps and tightening up the body control respectively.

The powertrain is every bit as muscular as you’d expect and proved one of the most refined PHEV systems I’ve come across. It’s quiet, potent, efficient and swaps between petrol and battery power virtually seamlessly.

Covering ground in this thing isn’t far off the definition of effortless.

But it’s not perfect. Let the 2026 Volvo XC90 Ultra T8 AWD PHEV deplete its hybrid battery, and, like every PHEV, it becomes a very heavy (2950kg) plugless hybrid which isn’t great for its fuel economy.

We saw 7.7L/100km on the trip computer at the end of our week-long loan, which included a full charge from empty, though admittedly living outside a major centre and covering plenty of country miles isn’t exactly the PHEV brief.

On the subject of charging, the XC90 only accepts AC power and takes three hours to charge from 0-100 per cent on a two-phase charger (at up to 6.4kW) – DC compatibility would be good to see and undoubtedly useful on long trips, holidays or day-to-day use if home charging proves tricky.

We struggled to reach the 77km EV range claim, petering out of battery power in the low-60s twice, but again, this test wasn’t carried out in the ideal PHEV environment.

One consideration for the less tech-oriented, the infotainment system is a little busy and not the simplest to navigate with sub-menus within sub-menus, hard-to-spot icons and trick home button. Even the front climate controls are in the screen.

Returning Volvo or Polestar customers will be fine, but those new to the brand should allow a decent adjustment period – and remember a cable for Apple CarPlay; not something I’m stoked about on a $130,000 luxury SUV.

Believe it or not, the XC90 is still only in its third generation, with the current model being the third facelift or major update of the current-gen, and that fact makes itself known via the cabin presentation which, while classy as mentioned above, flirts with being a bit boring beyond the Orrefors crystal gear selector.

The layout works well on the XC40, less so on a six-figure flagship. There’s also no spare wheel of any description.

If you’re in the market for a luxury large SUV and fancy the allure of a potent PHEV powertrain, then yes, you should.

Volvo may now be Chinese-owned and built, but that doesn’t mean its cars are any worse, as evidenced by the 2026 XC90 Ultra T8 AWD PHEV.

It’s supremely comfortable and composed, deceptively fast, well built, versatile, practical and excellently appointed with the potential to use next to no fuel for months on end depending on how you use it.

Sure, the cabin’s a bit dated and the tech can take a second to get to grips with, but I’d rather that than a meaningless mass of buttons, wasted space and vulgarity.

The XC90 isn’t selling anywhere near as well as the BMW X5, Audi Q7, Mercedes-Benz GLE, Lexus RX or even the Porsche Cayenne, but it deserves to – and the fact it's some 20-grand less than an equivalent German rival only sweetens the deal.

2026 Volvo XC90 Ultra T8 AWD PHEV at a glance:
Price: $130,990 (plus on-road costs)
Available: Now
Powertrain: 2.0-litre four-cylinder turbo-petrol-electric
Output: 230kW/400Nm (electric motor: 107kW/309Nm)
Combined output: 340kW/709Nm
Transmission: 8-speed automatic
Battery: 19kWh lithium-ion
Range: 77km
Energy consumption: 26.7kWh/100km
Fuel: 1.8L/100km
CO2: 40g/km
Safety rating: Not tested

Join the conversation at our Facebook page
Or email us at editor@carsales.com.au