Volvo Car India is aiming for battery electric vehicles (BEVs) to account for over 30% of its India sales by 2026. Currently, BEVs contribute around 25% of Volvo’s India volumes, with the remainder coming from internal combustion engine models equipped with mild-hybrid technology. The Swedish luxury carmaker plans to expand its electric portfolio with two new BEV launches over the next year.
“We are encouraged by the growing interest in our EV lineup and the adoption of sustainable mobility solutions in India,” said Jyoti Malhotra, Managing Director, Volvo Car India. “Looking ahead to 2026, our priorities are centred on expanding our electric vehicle portfolio, growing volumes with a BEV contribution of more than 30%, and delivering a seamless, premium ownership experience.”
Bridging the Gap
In 2025, Volvo’s India performance was driven by strong demand for its XC90 and XC60 petrol powered SUVs, both of which recorded double-digit growth in monthly sales in the second half of 2025. Despite the EV push, Volvo does not expect India to turn fully electric in the near term. “India is on an electrification journey, but it’s a journey that will unfold at its own pace,” Malhotra said. Mild hybrids, he added, will continue to play a critical role in bridging the transition by offering improved efficiency and lower emissions while retaining flexibility amid charging and infrastructure constraints.
Strategically, Volvo continues to position India as a high-value niche market rather than a scale-driven one. “The relevance of India lies in the quality of demand rather than just scale,” Malhotra said, noting that Indian buyers increasingly prioritise safety, sustainability and understated luxury over badge-led appeal.
On the proposed India–European Union Free Trade Agreement, Volvo sees the impact as structural rather than immediate. While phased tariff reductions could support competitiveness over time, Malhotra cautioned that currency pressures particularly a weaker rupee against the euro and the dollar could offset near-term gains. “The impact will be more structural than immediate,” he said, pointing to portfolio flexibility and access to technology as the real long-term benefits.
New Flagships
Among the two new launches, Sources tell us that Volvo plans to bring the ES90 electric sedan which will take on the BMW i5 in our market. The second model is likely to be the EX90 electric SUV which sits right at the top of Volvo’s global line-up and will take on the Mercedes EQS SUV in India.
