Volvo Car India is staying firmly on course toward an all-electric future, with one in every four cars sold in the country already being an electric vehicle, even as the rollout of GST 2.0 has reshaped buying patterns in the luxury automobile segment.
The new tax regime has streamlined the market by rationalizing GST slabs, making mild-hybrid luxury SUVs more attractive while maintaining a concessional 5 per cent GST on EVs.
Commenting on the impact, Volvo Car India Managing Director Jyoti Malhotra said, “Our portfolio mix has been quite consistent, and we continue to sell approximately 1 EV out of 4 car sales.” He explained, “This is a strategic reflection of two primary factors: the successful market entry of our EX30 and a temporary recalibration of CMA (Compact Modular Architecture) availability as we transition to newer global supply cycles.”
Also Read: How Battery-as-a-Service Is Reshaping India’s EV Economics
Explaining the shift in consumer preference, Malhotra said, “While the government's continued 5 per cent GST on electric vehicles (EVs) keeps the long-term focus on electrification, the reduction in overall tax for luxury ICE vehicles made our mild-hybrid SUVs an even more compelling proposition for the festive season and beyond.”
He also cautioned that currency volatility could impact prices in 2026, noting that the luxury auto market is set for a dynamic year ahead.
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