>>23204921>>23205022I have my own theories about some of the inspirations. Like previously stated, it has a very craggy kind of look to it and little geyser-like nubs, But it also resembles a Shisa, a mythical cross between a lion and a dog known for guarding Japanese shrines from evil spirits (same kind of basis as Arcanine). Shisa can also be found at Torii, gates to sacred areas. The arms on its back make an archway or gate shape that could possibly be equated to a Torii, seeing as how the main body itself looks like a Shisa. Also note Volcanion's red color, as both Torii and Shisa statues are often red.
Another possibility is the shape of the arms going over the mountain-shaped body resembling a sunrise over a mountain, which creates steam and fog. This would go along with its pokedex entry of living in the mountains and disappearing into fog.