The all-electric vehicle is expected to be exported from China to global markets in 2019.
Volvo will reportedly build its first all-electric vehicle in China.
Whether the EV will be a car or a crossover is not yet known. Sources tell Automotive News that it will be based on Volvo's compact modular architecture (CMA) platform, shared with China-based parent company Geely. Volvo's second EV could be a larger model based on the scalable product architecture (SPA) platform, already put to use in the XC90.
Volvo has introduced two concepts based on the CMA platform, the Concept 40.1 crossover and the Concept 40.2 sedan (pictured).
Separate rumors suggest the 40.1 will be presented in production form as the XC40 at the Shanghai auto show, potentially aligning with the AN report pointing to the EV announcement at the same venue.
The EV is expected to be manufactured at Volvo's Luqiao factory in southeast China. The plant is said to focus on CMA-based vehicles, both from Volvo and Geely's new Lynk & Co brand.
The EVs are believed to be a small part of Geely's plan to expand Volvo production in China.