Luxury EVs Will Be 40% By 2030: Volvo Car India MD We aim to strengthen make in India and hit another milestone of 10,000 units very soon, says Jyoti Malhotra, MD, Volvo Car India, adding that currently, the company has no plans of export from India

Swedish luxury car maker Volvo Car India is confident of a strong FY26. Even though global uncertainties may have painted a volatile picture of the automobile industry, Jyoti Malhotra, MD, Volvo Car India, is assured the company is in for the long haul in India. "We are excited about FY26, but the geopolitical uncertainties, tariffs, and headwinds are pushing the market into a cyclical mood and impacting stock markets. When we started the year, we had anticipated some of them but not all, I would say, although it is becoming uncertain, we are still on the right track," Malhotra told Entrepreneur India.

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, the latest offering globally, will come to India later this calendar year. We aim to bring one electric car every year. The geopolitical tensions are not going to shift our strategy in the India market. We will be keeping a close watch on how things are unfolding. The key is always to balance between what you need to achieve for now and what you really want to achieve in the future," the MD added.

The penetration of electric vehicles (EVs) in the Indian passenger car market is currently around 2 percent, but it is expected to rise to 5 percent by FY27 and 9 percent by FY30, according to a Nomura report. This growth is driven by increased public awareness, government incentives, new EV models, and improved charging infrastructure.

In April 2025, Volvo Car India sold 35 EVs compared with 40 units sold in April 2024. For the year ahead, the luxury car maker's focus will be on EVs. "Today, the total electric car penetration is at 2 percent. Out of this, the luxury electric car segment is already at 6-7 percent, and we are at close to 24-25 percent of the market share. If penetration continues at the pace, by the end of this decade, I believe this 2 percent will be 25 percent and luxury EVs will be around 40 percent," Malhotra explained.

He said ICE vehicles, too, would continue. The company's portfolio consists of 24 percent BEVs and the rest are ICE-equipped with mild hybrids. Currently, Volvo Car doesn't have plans to introduce plug-in hybrid electric vehicles (PHEVs) in India. The tax structure here is such that 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. The government is nudging the industry towards electrification, and we welcome the move."

Clearing Roadblocks

In many areas, EVs are exempt from road tax, or the road tax is significantly reduced. This is a common incentive to encourage EV adoption. However, the specific details and availability of road tax exemptions for EVs can vary by region and local government policies, with some states offering partial exemptions and registration fee waiver. For instance, Delhi's Draft EV Policy 2.0 proposes road tax waivers for hybrids, too. For BEVs, road tax and registration fees will be fully waived throughout the duration of this policy. However, for electric cars, this exemption will apply only to those with an ex-showroom price of INR 20 lakh or below. Haryana, West Bengal too gives complete exemption of road tax for EVs. Whereas, states such as Telangana, Kerala, and Andhra Pradesh impose some level of road tax. The tax structure is not uniform.

"One important aspect, when it comes to state governments, is about road tax. We see a lot of ups and downs happening in different states at different points of time. Each state government should offer a possible low road tax or no road tax on EVs. A move like this, would help in expanding the reach of EVs," the MD said.

When it comes to EV charging there are three types– home, commercial and retail. While steps are being taken to amp up commercial and retail charging, home chargers need more attention. One of the first challenges in setting up a home charging station is selecting an appropriate location. The ideal spot needs to be accessible, safe, and near a power source. A significant hurdle is ensuring that the home's electrical system can handle the additional load of an EV charger, particularly if you opt for a Level 2 charger, which requires a 240-volt outlet.

"One of the key requirements is ease of installing home chargers and support from concerned disc arms. All power distribution companies should make it accessible for anyone to get the home charger installed. Whether you are living in a row house or you are living in apartments, good support is needed," he quipped.

Another aspect for simplifying the use of EV charging is a unified app. One example is eHUB by MG, which has introduced an all-in-one EV charging solution that can be used by consumers of any EV brand. Apart from locating the charging station, another challenge for EV users is dealing with multiple payment systems at different charging stations, forcing them to use several charging apps on their smartphones. The proposal of a UPI-enabled EV charging aims to simplify the experience by allowing users to locate, reserve, and pay for charging stations through a single platform. This eliminates the need for multiple charging apps. For EV adoption to reach its full potential, the charging infrastructure needs to be convenient, fast, and universally accessible.

Currently, there is no such unified system in place. "There are some apps, but they are not very reliable. It's good to have one single unified app which can give visibility. And going forward, as we have UPI in India, it can also provide a payment gateway. We need one single unified solution, and as the government keeps emphasizing, I believe we might have a conclusion soon," he explained.

Regional Superpower

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.

"Our ambition is that whatever car we bring, we want to assemble it in India. For our latest offering EX30, we have a similar vision. We want to take the same route for all our cars in the future. We will make the next 10,000 happen much faster," Malhotra added.

Talking about exports from India, he shared, "Right now our focus is on the Indian market. The region has high potential and we want to maximize it. Currently, we are not exporting anything from India and are producing and selling here only."

The geographical diversity of India is adding to the company's sales numbers. "We are getting more sales from different regions. Apart from the metro cities, nearly 15 to 20 districts, is where the current wealth is accumulated. We have expanded our distribution and dealership reach to ensure we are available in all the places. The smaller pockets are adding to our overall volume."

Globally, Volvo Cars also saw a significant increase in sales for its electrified cars. For the full year 2024, Volvo Cars sold 175,194 fully electric cars, an increase of 54 per cent compared to 2023, and 177,593 plug-in hybrid cars, a 16 per cent increase compared to 2023. Sales of electrified models accounted for 46 per cent of all Volvo cars sold globally during 2024. Sales of fully electric cars accounted for 23 per cent of all Volvo cars sold globally during 2024, compared to 16 per cent in 2023.

However, in India, Volvo Cars faced a decline in sales of electric cars in 2024 compared with 2023. It sold 442 e-cars in 2024 compared with 570 in 2023, which is a fall of 22 per cent, according to data from Federation of Automobile Dealers Associations (FADA).