Volvo Cars India has decided not to go fully electric just yet. Earlier, the company had planned to sell only electric cars in the future. But now, it will continue selling both electric vehicles (EVs) and petrol/diesel (ICE) vehicles in India.
Currently, electric cars make up about 25% of Volvo’s total sales in India. Even though there’s been some growth in electric car sales recently, the overall market for luxury EVs is still small.
Volvo India’s Managing Director, Jyoti Malhotra, explained that EV adoption is different in each country, and even in different states of India. For example, states like Kerala, Maharashtra, and Delhi are doing better with EVs because they have lower taxes and more space for home charging. On the other hand, cities with many high-rise buildings struggle with EV adoption because charging at home becomes harder.
Malhotra added, “We will still launch new electric cars, including one later this year. But we will also continue focusing on petrol and diesel vehicles.”
Globally, Volvo had aimed to become 100% electric by 2030, but that timeline is now being extended. This change is in line with what other carmakers like Jaguar Land Rover and Mercedes-Benz are doing — they too are adjusting their all-electric plans based on real market conditions.
In India, EVs are taxed at only 5% GST, making them cheaper. But hybrid vehicles, which use both fuel and electricity, are taxed at a high 43% GST. Volvo offers hybrid cars in other countries, but Malhotra said they will consider launching them in India only if taxes become more favorable.
The company is also keeping an eye on Free Trade Agreements (FTAs) between India and other countries. These deals can help reduce costs and improve car imports. Malhotra praised the UK FTA and hopes that the upcoming deal with the EU will also benefit the auto sector.
So for now, Volvo will offer both electric and fuel-based vehicles in India, while monitoring customer preferences, state policies, and infrastructure improvements.
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