Volvo will no longer offer LiDAR on its flagship electric vehicles starting with the 2026 model year.
The automaker cited supplier Luminar’s contract failures and supply risks in ending the partnership.
Luminar, now in financial distress, has filed legal claims against Volvo seeking damages.
Volvo will remove LiDAR sensors from its EV beginning with the 2026 model year and has ended its partnership with U.S.-based supplier Luminar Technologies. The Swedish manufacturer confirmed the decision this week, stating that the EX90 and ES90 models will no longer include LiDAR, which had previously been offered as standard and then optional equipment.
“Volvo Cars has decided to remove the LiDAR sensor from its EX90 and ES90 cars and discontinue its relationship with supplier Luminar,” the company said in a statement.
Volvo attributed the decision to concerns over supply chain risk and cited Luminar’s failure to meet contractual obligations. A spokesperson added that Volvo is contacting customers whose orders may be affected by the change.
Volvo Lidar | Photo: VolvoVolvo was among the earliest adopters of LiDAR, investing in Luminar and integrating the technology into its next-generation EVs. The companies had worked closely since before Luminar’s 2020 public debut. However, operational and financial difficulties at Luminar escalated over the past year, straining the relationship.
The announcement comes shortly after Luminar defaulted on multiple loans, laid off 25% of its workforce, and announced it was exploring options including a possible sale. The supplier also faces an ongoing SEC investigation. Luminar responded to Volvo’s decision by filing a legal claim seeking damages and stated that recovering any losses may prove difficult.
Volvo has not announced plans to replace Luminar with another LiDAR provider. Instead, it will continue developing its driver assistance features using cameras, radar, and its core computing systems.
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The change brings Volvo closer to manufacturers such as Tesla that rely primarily on camera-based systems. While LiDAR offers depth perception advantages under certain conditions, it can be limited by weather or visibility. Conversely, camera systems are affected by glare and low light but are more cost-effective.
The end of Volvo’s LiDAR program could also affect sister brand Polestar, which currently uses Luminar sensors in its vehicles.
Source: Carscoops
