Volvo India Says One in Four Cars Sold Is Electric

Swedish luxury carmaker Volvo Car India says electric vehicles now account for roughly a quarter of its sales in the country, even as recent tax changes have made its mild-hybrid SUVs more attractive to buyers.

Speaking to PTI, Volvo Car India Managing Director Jyoti Malhotra said the rollout of GST 2.0 has helped bring greater clarity to the luxury car market by simplifying the tax structure. However, he noted that the company’s EV mix has remained largely stable despite the changes.

EV mix hasn’t really shifted

“Our portfolio mix has been quite consistent, and we continue to sell approximately 1 EV out of 4 car sales," Malhotra said when asked about the impact of GST 2.0 on electric vehicle penetration.

He explained that this sales pattern reflects two key factors: the successful entry of the Volvo EX30 in India, and a temporary adjustment in the availability of models based on the CMA platform as Volvo transitions to new global supply cycles.

Looking ahead, Malhotra reiterated that Volvo’s long-term strategy remains unchanged. “It is important to note that our commitment to an all-electric future remains unchanged, and we view these figures as a steady baseline as we prepare for a more aggressive EV rollout in 2026," he said.

GST changes helped ICE models too

At the same time, Volvo has seen strong momentum in its internal combustion engine lineup. Following the refresh of its ICE portfolio in 2025, the flagship XC90 and XC60 recorded “considerable double-digit growth in monthly sales in the post-GST period compared to the preceding months," Malhotra added.

He attributed this to the revised tax structure under GST 2.0. While electric vehicles continue to attract a concessional 5 per cent GST, the reduction in overall taxes for luxury ICE vehicles has boosted the appeal of Volvo’s mild-hybrid SUVs. “The reduction in overall tax for luxury ICE vehicles made our mild-hybrid SUVs an even more compelling proposition for the festive season and beyond," he said.

Price hikes still possible in 2026

On pricing, Malhotra cautioned that external factors could influence costs going forward. “2026 is going to be a year of dynamism for the luxury auto segment. Given the forex situation and other business-related factors that will weigh in, we might increase prices for some of our cars," he said.

Under GST 2.0, which came into effect in September last year, smaller petrol, LPG and CNG vehicles with engines under 1,200 cc and diesel vehicles up to 1,500 cc, all measuring no more than 4,000 mm in length, were brought under an 18 per cent GST slab, down from 28 per cent plus cess. Larger vehicles exceeding these limits now attract a flat 40 per cent GST, replacing the earlier structure of 28 per cent GST along with a cess of 15–22 per cent.

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