Volvo cars may become costlier in India this year
What's the story
Volvo Cars India's Managing Director, Jyoti Malhotra, has said that the implementation of GST 2.0 has made their mild-hybrid SUVs more appealing to customers. He said the new tax regime has been a major driver in streamlining the luxury segment by rationalizing its tax structure. This comes as Volvo continues to focus on an all-electric future, with one out of every four cars sold in India being an EV.
Sales consistency
Volvo's sales remain steady despite GST 2.0
Malhotra said that despite the changes brought by GST 2.0, Volvo's sales mix has remained consistent. He attributed this to two main factors: the successful launch of their EX30 model and a temporary adjustment of the CMA (Compact Modular Architecture) availability as they move toward the new global supply cycles.
Strategic outlook
Future plans and market performance
Looking ahead, Malhotra said that Volvo's commitment to an all-electric future remains unchanged. He sees the current sales figures as a stable baseline for a more aggressive EV rollout in 2026. He also noted that flagship models XC90 and XC60 witnessed significant double-digit growth in monthly sales after GST implementation compared to previous months.
Pricing strategy
Volvo may consider price hikes in 2026
Malhotra also hinted at possible price hikes for some of their cars in light of adverse foreign exchange fluctuations and other business-related factors. He said, "2026 is going to be a year of dynamism for the luxury auto segment." The GST 2.0 regime, which came into effect in September last year, revised tax rates on various vehicle categories based on engine capacity and length.