Volvo to Introduce EX30 in India by Year-End; Eyes Local Assembly for Competitive Pricing

Swedish luxury car market Volvo Car India is set to bring its most affordable electric SUV, the EX30, to the Indian market by the end of 2025 as part of its electrification push in the country. 

Volvo is conducting a feasibility study to determine the best way to introduce the model while keeping pricing competitive. Given the high import duties on Completely Built Units (CBUs), Volvo is considering local assembly (CKD route) to ensure the EX30 remains accessible to Indian consumers.

Speaking on the sidelines of the launch of its flagship SUV, the XC90, Jyoti Malhotra, Managing Director of Volvo Car India, reaffirmed the company's commitment to electrification, stating that 90-100% of its portfolio will be electrified by 2030. The EX30 is expected to play a key role in this transition by making luxury electric mobility more affordable.

"We have been steadily increasing our EV presence in India, with 24-25% of our portfolio already electrified. EX30 is an exciting addition that will expand the segment. However, to maintain competitive pricing, we must explore local assembly options," Malhotra explained.

EX30: Volvo’s Most Affordable EV Yet

Globally, the EX30 is positioned as Volvo’s most budget-friendly electric SUV, featuring cutting-edge technology, a compact design, and premium safety features. If launched through the CKD route, the EX30 could be priced significantly lower than other premium electric SUVs in India, making it a strong contender in the fast-growing EV market.

India's EV segment is witnessing increased interest, with major automakers such as Tata, Mahindra, Hyundai, and Maruti expanding their EV portfolios. Malhotra noted a shift in consumer mindset, where buyers now focus on which EV to buy rather than whether to buy one.

"We see more consumers seriously considering EVs now, and the EX30 will cater to those seeking a premium yet affordable electric SUV," he stated.
Volvo's Future Plans for India

While plug-in hybrids (PHEVs) remain off the table due to government policies favoring full electrification, Volvo will keep an eye on the segment, with a sharp focus on its full BEV expansion strategy. The company aims to introduce at least one new EV every year, and Malhotra expects “2026 to be a turning point for Volvo's electrification journey in India,” he added. 

With the EX30 set to launch by the end of 2025, Volvo is gearing up for a big year ahead. If the feasibility study aligns with regulatory and operational requirements, the EX30 could be assembled locally, making it a game-changer for Volvo in India’s luxury EV segment.

Recalibrating with PHEVs Globally

While Volvo is pushing towards a fully electrified future, the company acknowledges that the transition is not uniform across global markets. Many countries are witnessing a resurgence in demand for Plug-in Hybrid Electric Vehicles (PHEVs) as an interim solution, given infrastructure limitations and varying government policies on electrification. Volvo has realigned its global strategy to balance Battery Electric Vehicles (BEVs) and PHEVs, ensuring flexibility across different markets.

However, in India, PHEVs remain unviable under the current regulatory framework. The Indian government has firmly pushed for full-electric adoption, with limited incentives for hybrids. Malhotra emphasized that Volvo is closely monitoring any potential policy changes but, for now, the focus remains on fully electric models like the EX30.

"Globally, we are recalibrating our strategy to ensure the right mix of BEVs and PHEVs, as different markets are evolving at different paces. However, in India, the policy direction is very clear—full electrification is the priority. If the government were to reconsider incentives for PHEVs, we would have the technology ready, and we could bring those models to India in the future," Malhotra stated.

Navigating India's Tax Structure

Import duties on CBUs in India significantly inflate prices, making introducing models at attractive price points challenging. Amid brewing Skoda Volkswagen tax case on CKD duty and its interpretation, Volvo Car India has thoroughly cleared its cars with relevant authorities. 

Volvo is following a cautious approach by seeking advance rulings from Indian regulatory bodies to ensure compliance with the country's customs and taxation policies for assembling vehicles in India.

"We always ensure compliance before introducing a new model. We have sought advance clarification on the duty structure to determine the best approach for the EX30’s launch in India," Malhotra added.

For more insights, watch Jyoti Malhotra discuss Volvo's strategy for the EX30 and its positioning in India's luxury EV market: Watch here