Volvo India maintains ~25% electric vehicle sales in 2025—stable even after GST 2.0. Mild-hybrid SUVs like XC90 & XC60 record double-digit growth; company eyes aggressive EV push in 2026.
Volvo Car India has reported that electric vehicles continue to account for approximately one in four cars sold in the country, maintaining a stable EV mix of around 25% even after the introduction of GST 2.0 in September 2025. The luxury brand attributes this consistency to its focused electrification strategy and growing consumer acceptance of battery-electric models.
Speaking to PTI, Managing Director Jyoti Malhotra stated: “Our portfolio mix has been quite consistent, and we continue to sell approximately 1 EV out of 4 car sales.” She emphasized that the company views this as a solid baseline ahead of a more aggressive EV rollout planned for 2026.
While the GST 2.0 regime simplified the luxury car tax structure and reduced overall taxes for internal combustion engine (ICE) vehicles, it has made mild-hybrid SUVs such as the refreshed XC90 and XC60 more attractive. Malhotra noted that these flagship models recorded “considerable double-digit growth in monthly sales in the post-GST period compared to the preceding months,” crediting the revised tax benefits for boosting festive season demand.
EVs, however, continue to enjoy the concessional 5% GST rate, helping sustain their share. The company’s commitment to an all-electric future remains unchanged, with plans to introduce new models and intensify its push next year.
Looking ahead, Malhotra cautioned that 2026 could see price adjustments for some cars due to forex fluctuations and other business factors. “2026 is going to be a year of dynamism for the luxury auto segment,” she added.
Volvo’s balanced approach—sustaining EV momentum while capitalizing on ICE refreshes—positions it well in India’s evolving luxury market, where electrification and traditional powertrains coexist amid policy shifts.
Suhail Gulati
Suhail Gulati is the founder of ElecTree and an economist by training. He holds a Master's degree in Economics from the Delhi School of Economics and has worked in credit, retail banking, and financial stress testing at Barclays and American Express. He founded ElecTree in 2023 — building it into India's dedicated platform for 4-wheeler EV data, sales analysis, and original reporting. His work sits at the intersection of economic analysis and electric mobility — bringing a banker's rigour to a sector that deserves it.