Volvo Sees Strong Luxury EV Demand in India, Prepares for Price Hikes Amid Rising Costs

Volvo Cars India MD Jyoti Malhotra warns of possible price hikes due to rising input costs and forex pressures. The luxury carmaker's festive-season outlook is cautious, with Malhotra attributing the concerns to a depreciating rupee and global supply-chain challenges. However, he remains optimistic about the company's prospects, citing the growing demand for luxury EVs. Nearly one in four Volvo cars sold in India are already electric, with the company planning to bring the Volvo EX90 and ES90 to the market. Malhotra highlights the importance of localisation in the Indian automotive industry, with Volvo focusing on assembling vehicles locally to reduce costs. The company's plans for the EX90 and ES90 are part of its strategy to expand its electric model lineup, which currently accounts for 25% of its sales. In the short term, Volvo expects to see double-digit growth in the commercial vehicle market, driven by replacement demand and construction. Meanwhile, Switch Mobility CEO Ganesh Mani discusses India's electric bus growth, while Krishnakumar Srinivasan talks about scaling revenue past ₹6,000 crore and building diversified divisions. Skoda and VW CEOs reaffirm their commitment to India, but future growth hinges on a number of factors, including the adoption of electric powertrains. As the Indian automotive industry continues to evolve, Volvo's focus on electrification remains a key strategy, with the company aiming to reduce its carbon footprint and become a leader in the luxury EV segment.