Currently not looking at getting benefits of EV promotion scheme: Volvo Car India MD

Time of India

3 days ago

Swedish luxury carmaker Volvo is currently not looking at availing of benefits under India's scheme to promote passenger electric vehicles due to existing scale of the industry and will consider bringing
plug-in hybrid vehicles
in the country if the tax structure is conducive, a top official of its Indian arm said on Friday.
Volvo Car India
, which launched the refreshed version of its best selling model XC60 in India at an introductory price of ₹71.9 lakh, believes that the entry of new players like Tesla is good for popularising electric vehicles.
"We believe right now, with the current scale of our industry, CKD (completely knocked down) offers the best solution. That is what we already have, and we'll continue to do that. As more benefits are seen and we anticipate bigger scale then we can evaluate others," Volvo Car India Managing Director Jyoti Malhotra told PTI.
He was responding to a query on whether Volvo Car India is looking to avail of the benefits under the government's Scheme to Promote Manufacturing of Electric Passenger Cars in India.
Under the scheme companies are allowed to import up to 8,000 electric four-wheeler units annually at a lower import duty of 15 per cent, against 70-100 per cent currently, provided they commit an investment of ₹4,150 crore for setting up local manufacturing facilities.
Malhotra said there are various factors before taking "a call, and one of them is also the scale", adding "we have so many benefits available in India. There are different ways we can make cars in India or import cars in India."
When asked about the increase in competition with the entry of the likes of Tesla in India, he said,"I would say we are not looking at anybody as a competitor. They are all different car makers, they are colleagues, they are all welcome to come. I think India needs more, the more the merrier."
Asserting that Indian customers need choice, Malhotra said,"We are a huge country. One good thing I can say is that in the last 6-7 months we have seen a lot of interest in electric cars, we have seen a lot of interest in new generation cars and I think it is good... So the entry (of Tesla) is good for the customers."
On Volvo Car India's sales growth of EVs, he said,"Within our own portfolio, almost one in four cars, roughly 25 per cent that we sell are electric cars, which is really very healthy...we will be bringing another electric car, EX30 later this year."
The company currently sells two EV models -- EC40 and EX40 -- in India.
On the rare earth magnet shortage, Malhotra said,"We are doing assembly. We get our kits from other plants, so we are not directly impacted."
On the refreshed XC60, he said it is being assembled at the company's Bengaluru facility along with other models that the company sells in India, he noted.
When asked if the company would consider the plug-in hybrid version of the model, he told reporters, "We have a range of mild hybrids and plug-in hybrids... Those are the range that we have in this car (XC60) globally...Our global portfolio has it but the Indian tax structure is not really conducive as of today."
He further noted,"If things change, we can always bring it. So we are keeping a close watch." Under the current regulations hybrid passenger vehicles of length of up to 4 metre and up to 1200 cc petrol engine and up to 1500 cc diesel engine attract 28 per cent GST.
On the other hand hybrid passenger vehicles of length above 4 metre or above 1200 cc petrol engine and above 1500 cc diesel engine are taxed at 28 GST with 15 per cent additional cess.
"The mild hybrid that we have on offer today with the current (tax) structures that we have in India, I think this is best suited because we can offer the best value to our customers," Malhotra said, adding "but if things change, you can always bring it".
On the company's sales growth prospects, he said Volvo Car India is looking at a flattish growth this year as it is in a transition from old platforms to newer ones.