With strong tailwind, Volvo Cars sees EVs driving sales in India

Volvo Cars bets big on EV adoption in the Indian luxury car market and sees potential for its fully electric cars to make up for about 80 per cent of its sales in India by 2025.

While globally the premium car brand aims at 50 per cent sales from electric cars by 2025, it expects the ratio of electric cars in its volumes in India to be significantly higher due to several favourable factors.

Favourable factors

Favourable policy regime in terms of tax rates for luxury electric cars, different buying patterns among customers when compared with mass segment buyers and easier options to own a luxury electric car will be key driving factors for the Swedish luxury car maker to sell more electric cars in India over the next few years.

“I would like to see us selling at least 80-85 per cent EVs in India by 2025. We are investing heavily in petrol and electric cars. While India has seen a shift from diesel to petrol in the premium car segment, luxury car makers like Volvo Cars operating in India could lead the EV revolution faster than mass car segment,” said Charles Frump, Managing Director of Volvo Car India, who will move to a new global assignment. Frump will be succeeded by Jyoti Malhotra, who is now Director-Sales & Marketing, from March 1.

Consistent policy

The company wants the Centre to keep the EV policy intact (without tweaks) as auto makers have made investments based on it. Under the current framework, sale of luxury electric cars will attract 43-45 per cent lower tax when compared with diesel or petrol luxury cars. “This will help us offer luxury electric cars at an affordable rate, thereby accelerating the EV adoption faster in the luxury car segment,” said Frump.

In the luxury car segment, most of the customers own one or two diesel or petrol premium cars which they use it for long distance travel. As they use electric vehicles for medium distances and other purposes, there will not be range issues although most of the luxury EVs come with high range coverage. Also, these luxury electric cars don’t depend on public charging infrastructure.

Volvo Car India will make a beginning on the electric vehicle front this year as it gears up to introduce the XC40 Recharge, an electric compact SUV. “This will be a game-changer for us in the electric play. While it will be simpler to own XC40 Recharge, it will also be competitively priced,” he said.

Volvo Car India is now securing bookings for its new S60 sedan (priced at ₹45.9 lakh (ex-showroom) and the delivery will start next month. “We are also planning to introduce petrol variants of XC60 and XC90,” said Frump.

The company has been selling more than 2,000 units annually in India. Volvo Car India is also exploring subscription schemes and other ownership models for its cars in India.

While a good number of bookings are happening online, the company has adopted ‘one price for all India’ for its cars. It has also appointed dedicated personnel for its top 100 customers to take care of their service and other needs on priority, among othermeasures for personalisation and holistic experience.

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