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Volvo Cars will continue to introduce electric and internal combustion motor vehicles (ICE) to India, rotating its previous strategy to become all electric in the middle of the slow -sided customer adoption of battery -powered electric vehicles (bes).The Swedish luxury car manufacturer had said last year that from now on he will sell only electric vehicles in India in his attempt to have a fully electric portfolio at the beginning of the decade. Volvo’s strategy reflects those of other global car manufacturers such as Jaguar Land Rover and Izzz who are reviewing the plans to have a range of fully electrical products.
Speaking with Et, Jyoti Malhotra, CEO of Volvo Cars India, also said globally, while the company intends to go to all power lines, has now been pushed beyond 2030. “The adoption rate (of electric vehicles) is different in different countries. And also within the country (in India), it is different from the states,” said Malhotra.
He said that government policies are crucial to deepen the penetration of EV in India, with states that have given up on road taxes seeing higher adoption rates among customers.”We will continue to drive in electric car and make a launch in line by the end of this year. But at the same time, we will continue to focus on the ice,” said Malhotra.
Electric vehicles currently contribute to about 25% of Volvo sales in India. The market of these ecological luxury cars is still small although it is growing, according to the company.
“About a year ago, Evs had started to lose steam. We are seeing a little increase in the segment in the last six months. But the needs of customers are different among the regions,” said Malhotra.
“Domestic charging is extremely important for customer comfort when it comes to EV. In cities, where there are skyscrapers, the recharging of electric cars is a challenge”, added that Volvo is seeing a strong adoption of EV in states such as Kerala, Maharashtra and Delhi, where there are bass and state policies are favorable. He was talking on the sidelines of the launch of the SUV XC60 model.
On a global level, Volvo has plug-in hybrids in his wallet, but Malhotra has said that the company will consider launching them in India only if the tax structures are more favorable.
India currently collects a tax rate of goods and services (GST) of 5% on electric vehicles and 43% on hybrids.
Overall, Malhotra said that luxury cars sales in India, which have exceeded the largest cars market in recent years, has slowed down in the first half of 2025 as volatile equity markets, and the growing geopolitical tensions have affected the demand among the rich aspirants of the country. However, he added that Volvo is on the right way to achieve his sales goal for this calendar year, although probable that the growth of the sector is deactivated.
Separately, Malhotra has defined the FTAs ink or negotiated by the Indian government as a step in the right direction, which will help to grow the long -term car industry.
“The United Kingdom ALS has set a point of reference. While the one with the EU is still some time, the free trade agreements are good for the economy. India is seen as a market with a growth potential. If a company should invest in India today, they will also consider the scale available on the market here. The commercial agreement is aimed.
