Volvo is planning to assemble hybrid vehicles in India to get ahead in the luxury car segment to emerge leaders when the emission standards get strict in the country. The company has set a target of selling a million electric vehicles by 2025 and India is expected to be a key contributor.

India: Volvo, the luxury car maker is planning to assemble hybrid vehicles locally in a move to get ahead of the German luxury car makers in the e-vehicle space when emission standards would get stricter in India. Volvo set up a factory in India last year and is expecting majority of its vehicle portfolio to be locally manufactured in the coming years.

The MD of Volvo Car India in an interview said that the company has set a target of selling a million electrified vehicles by 2025 and India will be one of the major contributors to that target. There are various studies going on and the company is trying to convince the government on the importance of hybrid vehicles in moving towards complete electrification. The company is planning to electrify majority of its fleet in India by 2020, in line with its global transition.

Maruti and Toyota are also working on localizing electric and hybrid cars and even Hyundai has announced its plans of assembling electric car in India by 2019. Volvo has been quick to bring global models in India within six months of global launch and is also trying to study how the Indian market can bring in the company's first electric car which is slated for global launch in 2019.

In the meantime, the company is adding models to its local manufacturing footprint. After the XC90, Volvo has added the S90 to the local production and over the next year, it plans to add the XC60 and V90 country to its production line.

Led by the new XC60 Volvo Car India posted a growth of over 25% in January to March of 2018 and which was over 28% growth of 2017, when the company sold around 2000 units. With the new XC40 lined up for launch in July to September 2018, Volvo is eyeing over 50% growth in 2018. The company closed with a market share of 5% at the end of 2018 and with the new generation cars on SUVs on the new architecture, Volvo is expected to double its market share to 10% in the coming few years. Apart from expansion of portfolio, with newer generation of cars, the company will be doubling the dealership footprint to over 40 in 2-3 years.

According to the recently published report by TechSci Research, “India Electric Vehicle Market, By Vehicle Type (Three-Wheeler, Two-Wheeler, Passenger Car & Bus), By Drivetrain Technology (Battery Electric Vehicle Vs. Plug-in Electric Vehicle), Competition Forecast & Opportunities, FY2013 – FY2023”, India electric vehicle market is projected to grow at a CAGR of over 37%, during FY2018-FY2023. Robust market growth is anticipated on account of rising number of government initiatives such as incentive schemes to encourage adoption of environment-friendly electric vehicles, growing consumer inclination towards electric vehicles, concerns over harmful effects of air pollution, and huge investments by various OEMs for developing more affordable and premium electric vehicles in the coming years.

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