Volvo to phase out diesel cars in India, to go fully electric

Volvo will phase out diesel cars from India by the end of this year and launch one electric car per year in a gradual shift to exclusively offering electric cars.

The Swedish carmaker recently unveiled the XC40 Recharge compact SUV, its first full-electric car for the Indian market, which would be launched towards the beginning of the festive season later this year. It is likely to be priced around Rs 45 lakh.

The global plan of its parent is for a complete transition to green cars, said Jyoti Malhotra, the new MD of Volvo Cars India.

Volvo India is considering a completely knocked down operations as India's goods and services tax on electrics is 5 percent against 45-50 percent on larger petrol or diesel cars, according to Malhotra.

The company will also conduct a feasibility study on exporting green cars and for a battery assembly plant.

Malhotra said Volvo India is evaluating the local electric vehicle industry and developing a business case.

The company is also expecting healthy business growth and is looking to double sales in two years from 1,400 units it sold in 2020.

Malhotra added that things have bounced back from the health situation last year and are seeing a lot of positivity now.