As we have witnessed big companies like Tesla and Mercedes are continuing to slash the prices of its EVs while on the other hand, Volvo expects one-third of its sales through EVs.
In 2023, Volvo Car India ranked second in terms of EV sales, slightly ahead of Mercedes Benz India and behind BMW Group India. It now anticipates that EVs will account for one-third of its sales in 2024, a company official stated. 690 of the 2,423 units Volvo India sold in 2023 were electric vehicles (EVs), making up 28% of the total volume sold.
Volvo’s objective is to be all Electric by 2030.
According to Mr. Malhotra, MD, the premium car market is rapidly electrifying as high-end buyers choose sustainability. Currently, 4% of all luxury cars are electric vehicles, compared to 1.5% of passenger cars, according to him. The XC40 and C40 are the two EVs that Volvo India sells. The company declared that in 2025, it would launch the Ex30 and Ex90, two additional EVs. Mr. Malhotra continued, "All EVs are sold directly to customers online for pricing transparency and By 2030, we want to be completely electric."
As a result, Volvo's EV volume will increase annually. Volvo expects that a third of sales this year will come from EVs, and that percentage will increase to 50% in a year or two before reaching 100%," he stated.
In the upcoming years, the company may consider a direct sales model for conventional internal combustion engine vehicles as well, given the strong consumer acceptance of direct EV sales.
In keeping with the brand's global commitment, Malhotra expects the growth momentum of electric vehicle contribution to continue, with 100% of sales coming from electric vehicles by the end of the decade.
India was the Swedish automaker's fastest-growing market in the Asia-Pacific area. As the automaker looks for newer manufacturing bases outside of China, the US, and Sweden, India will play a role in its future production and export base.
Although volumes are still extremely low, Malhotra clarifies that "India is seen as a potential production base of the future, which could be used for exports." Right now, it's just an idea; nothing has been decided," he concluded.
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