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 an alternative to proceed promoting each electrical and inside combustion engine (ICE) autos within the nation. Electric autos at present 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 hunch a yr in the past. The determination comes after corporations’ earlier claims to section out ICE models fully.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 totally 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 position 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 dwelling charging is a problem.India at present levies a Goods and Services Tax (GST) of 5% on EVs, whereas hybrids entice a a lot steeper 43%. Volvo provides plug-in hybrids in worldwide markets, however Malhotra clarified that Indian launches would depend upon extra beneficial tax regime.The firm is making ready to introduce a brand new electrical mannequin later this yr however will concurrently retain deal with ICE autos to cater to various market wants.Volvo’s shift aligns with comparable strikes by world friends reminiscent of Jaguar Land Rover and Mercedes-Benz, who’re reassessing their timelines for a totally electrical portfolio amid comparable market realities.Industry knowledge reveals 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 enhance 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.