**Volvo Car India Evaluates Electric Vehicle Strategy Amid Industry Growth**
**Meta Description:** Volvo Car India is not pursuing electric vehicle benefits under India’s scheme but may consider plug-in hybrids if tax conditions improve.
**URL Slug:** volvo-car-india-electric-vehicle-strategy
**Volvo Car India Evaluates Electric Vehicle Strategy Amid Industry Growth**
In a recent statement, Volvo Car India has indicated that it is not currently seeking to take advantage of the Indian government’s scheme aimed at promoting electric passenger vehicles. The company’s decision is influenced by the current scale of the industry, according to Jyoti Malhotra, Managing Director of Volvo Car India. The firm is open to introducing plug-in hybrid vehicles in the future, contingent on a favorable tax structure.
Volvo recently launched the updated version of its popular XC60 model in India, priced at ₹71.9 lakh. Malhotra expressed optimism about the entry of new players like Tesla into the Indian market, viewing it as beneficial for the overall electric vehicle landscape. “We believe that, given the current scale of our industry, completely knocked down (CKD) kits offer the best solution for us at this time,” he stated. “As we see more benefits and anticipate a larger scale, we can reassess our options.”
The Indian government’s scheme allows companies to import up to 8,000 electric four-wheeler units annually at a reduced import duty of 15%, provided they invest ₹4,150 crore in local manufacturing. Malhotra emphasized that various factors, including industry scale, will influence Volvo’s decision-making process regarding electric vehicle production and imports.
Addressing the competitive landscape with the arrival of companies like Tesla, Malhotra noted, “We do not view them as competitors but as colleagues. The more players in the market, the better it is for consumers.” He highlighted the growing interest in electric vehicles in India, stating that approximately 25% of Volvo’s sales are now electric cars, with plans to introduce the new EX30 electric model later this year.
Currently, Volvo offers two electric models in India: the EC40 and EX40. Regarding supply chain challenges, Malhotra mentioned that the company is insulated from the rare earth magnet shortage due to its assembly operations, which rely on kits sourced from other plants. The refreshed XC60 is being assembled at Volvo’s facility in Bengaluru, alongside other models.
In conclusion, while Volvo Car India is not pursuing immediate benefits from the government’s electric vehicle scheme, it remains committed to evaluating its options as the market evolves and conditions improve. The company is focused on expanding its electric vehicle offerings and adapting to the changing automotive landscape in India.
**FAQ**
**Q: Is Volvo Car India planning to introduce more electric vehicles?**
A: Yes, Volvo Car India plans to expand its electric vehicle lineup, with the introduction of the EX30 model later this year, and currently, 25% of its sales are electric cars.
