Swedish luxury carmaker Volvo will be phasing out diesel cars from India by the end of this year and gradually move over to only electrics as the company works towards local assembly of green cars.
The company, owned by China’s Geely, plans to launch one electric car per year as it shifts its car portfolio to sustainable mobility, in line with the global plans of its parent for a complete transition to green, Jyoti Malhotra, the new MD of Volvo Cars India, said.
The company unveiled its first full-electric car meant for India — ‘XC40 Recharge’ compact SUV — and this will be launched towards the beginning of the festive season later this year (likely to be priced around Rs 45 lakh).
Malhotra said the company is considering local CKD (completely knocked down) operations as GST on electrics is 5% against 45-50% on larger petrol/diesel cars.
“We are evaluating (local EV) now… We are developing a business case,” he said, adding that the company will also conduct a feasibility study for a battery assembly plant and also possible export of green cars.
Malhotra said Volvo India expects a healthy growth in its business, and is looking to double sales in two years from 1,400 units it sold in 2020. “Business was challenging last year as the country and the economy was hit by corona pandemic. However, things have bounced back, and we are seeing a lot of positivity now.”