Volvo India's Strategic Pivot

Volvo Cars India has made a significant shift in its strategy, deciding to continue the sale of both electric vehicles (EVs) and internal combustion engine (ICE) models in the country. This move comes as the market for premium battery electric vehicles (BEVs) shows slow growth, despite recent signs of recovery.

Market Dynamics and Consumer Needs

Jyoti Malhotra, Managing Director of Volvo Cars India, highlighted the varied adoption rates of EVs across different regions and states, attributing this to differences in state policies and infrastructure. States with favorable tax regimes and housing structures, such as Kerala, Maharashtra, and Delhi, are seeing better EV uptake.

Future Plans and Global Trends

While Volvo prepares to introduce a new electric model later this year, it will also maintain its focus on ICE vehicles to meet diverse consumer demands. This strategy mirrors adjustments by other global automakers like Jaguar Land Rover and Mercedes-Benz, who are also reevaluating their timelines for transitioning to fully electric portfolios.

Industry Insights

The luxury vehicle market in India witnessed a modest 1.8% year-on-year increase in the first half of 2025, with around 22,900 units sold. Malhotra also commented on the potential benefits of Free Trade Agreements (FTAs) for the auto sector, citing the UK FTA as a positive example.