EV adoption in luxury segment will be faster than mass segment: Volvo

Swedish auto giant Volvo thinks that the rate of electric vehicle adoption in the luxury segment will be faster and higher than in the affordable mass segment in India.

During an event held on Tuesday, the carmaker expressed confidence that it will sell one electric cars in every three vehicles this year, increasing the contribution of electric cars in overall sales. Volvo currently offers two electric vehicles – the C40 Recharge and XC40 Recharge SUVs. It also plans to introduce two more EVs by next year.

Volvo has a global ambition of going fully electric by 2030. The Indian market will be no different in Volvo’s approach as the Swedish carmaker aims to expand its EV portfolio in coming days. The carmaker has revealed its plans to boost EV sales to contribute one-third of its overall sales by this year with the help of just two models. This will help in increasing its EV penetration in the luxury segment.

In general,Volvo is of the opinion that EV adoption is faster in the luxury segment. Volvo sold 2,423 units last year, out of which 690 were electric vehicles. Jyoti Malhotra, Managing Director at Volvo Car India, said, “The EV penetration in the overall passenger vehicle segment is nothing, about 2 per cent, while in the luxury segment it is 7 per cent. So, adoption of EVs in the luxury segment will be faster.” According to Malhotra, EVs will contribute half of the overall India sales in the luxury segment by 2030. “For us, we are selling more EVs and our ICE (Internal Combustion Engine) products are made to order. (As much as) 30-35 per cent of new customers are for electric cars,” he added.