Volvo India’s gear shift: Changes EV-only plan; ICE models to stay amid slow uptake | India Business News

Volvo Cars India has revised its earlier technique of transitioning to an all-electric portfolio, opting as a substitute to proceed promoting each electrical and inner combustion engine (ICE) autos within the nation. Electric autos at the moment account for round 25% of Volvo’s gross sales in India. However, the marketplace for premium battery electrical autos (BEVs) stays small, though the corporate notes indicators of restoration within the final six months following a stoop a 12 months in the past. The resolution comes after firms’ earlier claims to section out ICE models completely.Volvo Cars India, managing director Jyoti Malhotra, talking to Economic Times, mentioned “The adoption rate (of electric vehicles) is different in different countries. And even within the country (in India), it’s different across states.” “We will continue to drive in electric cars and have a launch lined up later this year itself. But at the same time, we will continue to focus on ICE,” he added.Volvo had introduced plans to go absolutely electrical by 2030 globally, however the timelines have now been prolonged. “About a year back, EVs had started losing steam. We are seeing some uptick in the segment in the last six months. But customer needs are different across regions,” mentioned Malhotra.He identified that state insurance policies and infrastructure play a pivotal function in EV adoption. States like Kerala, Maharashtra, and Delhi have beneficial tax regimes and extra low-rise housing, are seeing higher uptake, in contrast to cities dominated by high-rises, the place house charging is a problem.India at the moment levies a Goods and Services Tax (GST) of 5% on EVs, whereas hybrids appeal to a a lot steeper 43%. Volvo presents plug-in hybrids in worldwide markets, however Malhotra clarified that Indian launches would rely upon extra beneficial tax regime.The firm is making ready to introduce a brand new electrical mannequin later this 12 months however will concurrently retain deal with ICE autos to cater to numerous market wants.Volvo’s shift aligns with comparable strikes by international friends equivalent to Jaguar Land Rover and Mercedes-Benz, who’re reassessing their timelines for a totally electrical portfolio amid comparable market realities.Industry information exhibits that round 22,900 luxurious autos had been bought within the first half of 2025, marking a modest 1.8% enhance year-on-year.He additionally welcomed India’s ongoing negotiations round Free Trade Agreements (FTAs), noting their potential to increase the auto sector. “The UK FTA has set a benchmark. While the one with the EU is still some time away, free trade agreements are good for the economy,” he mentioned.