Volvo hikes XC40, XC60, S90 and XC90 mild hybrid prices. Here's why
Volvo Cars India has announced a price hike on its mild hybrid models currently on sales in the country. The price hike will impact models like the XC40, XC60, S90 and XC90 mild hybrids. The Swedish carmaker has said that the price hike has been implemented with immediate effect. It will increase the prices of these models by up to two per cent over existing ex-showroom prices. Volvo attributed this sudden hike due to announcements made during the Union Budget 2023 earlier this month. The carmaker said that increase in customs duty has forced it to revise price list of its mild hybrid models.
Volvo has recently upgraded its entire fleet to mild hybrid models. Last year it launched the XC40 and XC90 mild hybrid variants. After the price hike, the ex-showroom price of the XC40 B4 Mild Hybrid has been revised to ₹46.40 lakh, up from ₹43.20 lakh. The XC60 B5 Mild Hybrid will now cost ₹67.50 lakh (ex-showroom), the S90 B5 Mild Hybrid will be available at ₹67.90 lakh (ex-showroom) while the XC90 B6 Mild Hybrid is now priced at ₹98.50 lakh (ex-showroom).
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The decision to hike the price of these models became necessary after Finance Minister Nirmala Sitharaman proposed hike on cars sold in India through CBU or CKD route. Jyoti Malhotra, Managing Director at Volvo Car India, said, “The changes in customs duty as announced in the recent budget has resulted in an increase in input costs of our petrol mild-hybrid models. This has resulted towards marginally increasing the price of our mild hybrids."
The Budget 2023 proposed hike in customs duty on fully imported car models. Customs duty on vehicles in completely built units (CBUs) costing less than $40,000 or with engine capacity less than 3,000 cc for petrol-run vehicles and less than 2,500 cc for diesel-run vehicles has been raised from 60 per cent to 70 per cent.
Volvo has its local manufacturing facility in India located near Bengaluru. The mild hybrid models are assembled here along with the carmaker's other models like the XC40 Recharge electric SUV. Soon, Volvo will also start production of the C40 electric SUV, which is expected to be launched some time later this year.