Volvo to release EVs in India and not sell diesel-based cars
ECONOMY & POLICY

Volvo to release EVs in India and not sell diesel-based cars

Martin Persson, head of Volvo Cars for the Asia Pacific (except China) region, stated that Volvo Cars would only introduce electric cars in India from now on and would not sell petrol and diesel-powered vehicles in the market beyond the 2030 deadline. He informed ET that the new products they intend to bring to the market will be electric. He emphasised that Volvo still maintains internal combustion engine products, which they consider competitive for customers who prefer them, clarifying that their intention is not to eliminate these options. However, he reiterated that the future direction towards electric vehicles is evident.

Globally, Volvo Cars plans to transition entirely to electric vehicles by the end of the decade. In India, where the company currently achieves approximately 25% of its sales from electric vehicles, it was noted that the electric car market is still small but growing rapidly. According to Volvo, as more electric vehicles are introduced, new customers will emerge, thereby accelerating adoption.

Volvo Cars aims to introduce one new electric vehicle annually over the next few years to capitalise on this rapidly evolving market. The first model scheduled for launch is the EC30 in 2025, followed by the high-end EC90. Executives mentioned that a timeline for the flagship electric model's launch will be announced soon.

Persson observed that the Indian market's evolution parallels that of Japan and Korea, where electric vehicle sales currently remain limited at around 2%. He pointed out that, while the penetration of electric vehicles in the luxury segment exceeds that of the mass market, the overall share of electric vehicles in India's luxury car market stands at about 7%.

Jyoti Malhotra, managing director of Volvo Car India, highlighted that the company commands a 22-23% share in the luxury electric vehicle market with its current two models, expressing confidence that this share will expand with the introduction of the EC30.

Regarding the potential for growth in India's luxury vehicle segment, Persson remarked that the country is one of the fastest-growing markets for Volvo in the region, driven by the increasing number of millionaires. He affirmed that Volvo is actively assessing the Indian market to determine the appropriate actions for further growth, which could include industrial measures or other initiatives.

Persson noted that Volvo Cars India, among others, is evaluating the government's Scheme for Manufacturing of Electric Cars introduced earlier this year. However, the company has not yet decided whether to participate in the scheme.

Martin Persson, head of Volvo Cars for the Asia Pacific (except China) region, stated that Volvo Cars would only introduce electric cars in India from now on and would not sell petrol and diesel-powered vehicles in the market beyond the 2030 deadline. He informed ET that the new products they intend to bring to the market will be electric. He emphasised that Volvo still maintains internal combustion engine products, which they consider competitive for customers who prefer them, clarifying that their intention is not to eliminate these options. However, he reiterated that the future direction towards electric vehicles is evident. Globally, Volvo Cars plans to transition entirely to electric vehicles by the end of the decade. In India, where the company currently achieves approximately 25% of its sales from electric vehicles, it was noted that the electric car market is still small but growing rapidly. According to Volvo, as more electric vehicles are introduced, new customers will emerge, thereby accelerating adoption. Volvo Cars aims to introduce one new electric vehicle annually over the next few years to capitalise on this rapidly evolving market. The first model scheduled for launch is the EC30 in 2025, followed by the high-end EC90. Executives mentioned that a timeline for the flagship electric model's launch will be announced soon. Persson observed that the Indian market's evolution parallels that of Japan and Korea, where electric vehicle sales currently remain limited at around 2%. He pointed out that, while the penetration of electric vehicles in the luxury segment exceeds that of the mass market, the overall share of electric vehicles in India's luxury car market stands at about 7%. Jyoti Malhotra, managing director of Volvo Car India, highlighted that the company commands a 22-23% share in the luxury electric vehicle market with its current two models, expressing confidence that this share will expand with the introduction of the EC30. Regarding the potential for growth in India's luxury vehicle segment, Persson remarked that the country is one of the fastest-growing markets for Volvo in the region, driven by the increasing number of millionaires. He affirmed that Volvo is actively assessing the Indian market to determine the appropriate actions for further growth, which could include industrial measures or other initiatives. Persson noted that Volvo Cars India, among others, is evaluating the government's Scheme for Manufacturing of Electric Cars introduced earlier this year. However, the company has not yet decided whether to participate in the scheme.

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