Growing Competition Is Good For EV Penetration In India: Volvo Car India MD From the past six-seven months, we have seen a lot of interest in electric and new generation cars, says Jyoti Malhotra, MD, Volvo Car India

Aligned with its goals of achieving a strong FY26, Volvo Car India launched the Refreshed XC60, mild hybrid, at an introductory ex-showroom price of INR 71,90,000. In the first quarter of the year, Volvo Car launched the new XC90, its flagship ICE sport utility vehicle (SUV), equipped with a mild hybrid. Furthermore, EX30, a compact electric SUV, will come to India later this calendar year. Bullish about electric vehicle (EV) penetration in India, the MD sees competition in the space as a growth indicator. Referring to Tesla's entry in India, Jyoti Malhotra, managing director, Volvo Car India, said, "From the past six-seven months we have seen a lot of interest in electric cars and new generation cars. Customers are coming forward and competition in the field is good for India. We are fellow car makers and everyone is welcomed in India."

The Refreshed XC60 will be assembled in India. Volvo Car India has been assembling its cars in India since 2017 with the XC90 XUV being the first model to be assembled and rolled out from its Hoskote plant near Bengaluru. It achieved a production milestone of 10,000 units, a combination of ICE and BEV cars, at its Bengaluru facility in January 2024. The 10,000th model produced was an all-electric XC40 Recharge SUV. Before 2017, the company was importing only Completely Built Unit (CBU) cars.

"Currently, we are bringing in CKD (completely knocked down kits) and we are continuing with that. Our ambition is that whatever car we bring, we want to assemble it in India. We will make the next 10,000 happen much faster," Malhotra added.

Speaking about the tax structure, the MD emphasized that plug-in hybrid electric vehicles (PHEVs) are subject to a 28 per cent Goods and Services Tax (GST). However, the effective tax rate on hybrid cars is around 48 per cent due to other taxes and cesses, which does not make it feasible for the Indian market. "We have global capability and we can take a call based on how things are on the ground. Today, we don't believe that with the current tax structure, PHEVs make sense. To bring them we need to offer a price in which customers see value. The government is nudging the industry towards electrification, and we welcome the move."

Talking about the new launch, he said that the XC60 has consistently been one of the most successful models globally, and in India, it has garnered immense customer appreciation. With the latest Refreshed XC60, the company is anticipating good response. "We are elevating the user experience to the next level, from a new-generation infotainment system and enhanced safety features to a contemporary Scandinavian design language. It powerfully reflects our commitment to offering customers not just premium design, but the best driving experience possible," added Malhotra.

Globally, XC60 has recorded a sales number of 20,706 units in June 2025, a 7.7 percent increase compared with 19, 222 in June 2024, according to the latest data available. It is the highest retail sale in the entire portfolio for the month of June 2025.