Safety stalwart Volvo has dropped LiDAR tech, which it previously declared delivered much improved vehicle safety, after cancelling a contract with tech partner Luminar Technologies.
LiDAR – which stands for ‘light detection and ranging’ – is a laser-based system, with the Volvo EX90 electric SUV introduced in Australia in 2024 the first of the automaker’s cars fitted with the tech.
The ES90 electric liftback due on Australia showrooms early next year was also announced with LiDAR tech, working in conjunction with five radars, seven cameras and twelve ultrasonic sensors.
Volvos using LiDAR have a ‘bubble’ above the front windscreen where the technology was fitted – with the EX90 and ES90 set to lose their bubbles in 2026.
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“Volvo Cars has decided to remove the LiDAR sensor from its EX90 and ES90 cars and discontinue its relationship with supplier Luminar, ” Volvo Cars USA said in a statement.
Volvo Australia has confirmed to CarExpert existing stocks of LiDAR-equipped cars, including around 30-40 ES90s, will be the last, with all ongoing factory orders not to include the tech.
The move came after Volvo made the tech, which was initially standard equipment, optional instead – prompting Luminar Technologies, which it owns a stake in, to file a lawsuit last month against the automaker in response.
“Volvo Cars has made this decision to limit the company’s supply chain risk exposure, and it is a direct result of Luminar’s failure to meet its contractual obligations to Volvo Cars,” said Volvo Cars USA in its statement.
The automaker said the ‘failure’ by Luminar Technologies, with which it has been developing the tech since 2018, forced it to cancel a five-year contract with the company.
In 2024, Silicon Valley-based Luminar Technologies’ biggest customer was electric car manufacturer Tesla, despite Tesla CEO, Elon Musk, previously declaring the tech as “freaking stupid”.
Luminar Technologies also has partnerships with Mercedes-Benz, Daimler Truck AG and other tech companies including NVIDIA and Intel Mobileye, claiming the tech will usher in a “new era of safety”.
LiDAR was used for functions such as adaptive cruise control, automatic parking, and autonomous emergency braking, with Volvo having said LiDAR would play a key role in the development of autonomous driving.
The advantages of LiDAR included a greater depth of field than camera-based systems and the ability to ‘see’ in various weather conditions as well as during both day and night.
Volvo previously said LiDAR would help reduce the number of ‘severe’ crashes by 20 per cent, or one-fifth, with Luminar Technologies claiming the tech could save as many as 1 million lives annually.
The Swedish brand says the removal of LiDAR won’t reduce the safety levels of its vehicles but hasn’t detailed the impact of the decision on specific functions.
The EX90 achieved a five-star rating from safety authority Euro NCAP this month, with the same rating set to be applied to Australian versions in a data-sharing arrangement with ANCAP.
“The company’s products can deliver a high level of safety and driver support, enabled by the cars’ powerful core computing coupled with their advanced sensor set, with or without a LiDAR,” a statement from Volvo said.
In early November 2025, Volvo said it would share more hardware and software across its models with Geely, in order to reduce costs – as well as adding more hybrid tech to its global lineup.