Volvo Car India MD Jyoti Malhotra said there had been strong traction for EVs in the Indian market. He expects nearly a third of the company’s sales in 2023 to come from EVs, with the parent company also increasing the allocation of electric vehicles for the Indian market.
Globally, Volvo is aiming to be fully electric by 2030, and has plans to make EVs to account for at least half its sales volume by 2025. Malhotra, however, set a steeper target for its India business: 80% of sales from EVs by 2025.
Because of supply chain challenges, Volvo had delayed introduction of its EVs in India by a year. The positive side is that the market is now more ready than a year earlier for the adoption of the technology, Malhotra said.
“We were not clear last year, but now we are. We are already sold out for 2022, EVs already have a waiting for 9-10 months. We are hoping for a higher allocation for 2023 to bring down the waiting period,” he said.
According to Malhotra, India’s market for luxury passenger vehicles in 2023 may regain its previous peak of 2018 and so will Volvo, which is aiming to sell about 3,000 units next year, including EVs.
In 2022, Volvo is likely to sell about 1,900 vehicles, a 14-15% expansion from last year. The pace of growth is restricted by lack of supplies. On Wednesday, the company introduced a 48V mild-hybrid version of the XC 90. With this, Volvo says all its vehicles in India are either fully electric or hybrids. It is set to launch the C40 electric coupe in the middle of next year. It introduced the XC40 Recharge in July this year.
“We will be bringing one new EV every year. We already had an aggressive EV plan, our confidence level and our belief have only gone up with the recent excitement,” Malhotra said.
“It is expected that the market for EVs may touch about 15,000 to 20,000 units or 30% of the overall market in the coming three to five years and we would like a significant share of it. We are taking all steps necessary at present to participate in this growth story,” he said.
Volvo has decided to collaborate with a solar power solution provider, who will facilitate every EV buyer of the company to check the feasibility of installing a solar powered source of energy to charge the vehicle.