Volvo Cars India has launched its flagship EX90 electric SUV at an introductory ex-showroom price of ₹1.26 crore with bookings now open and deliveries scheduled to start from January 2027. The 6-seater family SUV marks Volvo's first-ever software-defined vehicle offering in the Indian market, developed on the company's new SPA2 platform. According to Managing Director Jyoti Malhotra, the launch represents "a major milestone in Volvo Car India's commitment towards a more electric, software-defined future." The vehicle features advanced technology including NVIDIA DRIVE platform and Qualcomm Snapdragon 8155 cockpit technology, a 14.5-inch central touchscreen running Google ecosystem, and wireless Apple CarPlay with continuous Over-The-Air updates.
Volvo Cars India identifies high taxation on plug-in hybrids as a major challenge for their introduction, with Managing Director Jyoti Malhotra stating that "Indian taxation is not conducive" for plug-in hybrid vehicles. The tax structure creates a significant barrier, as battery electric vehicles attract 5 per cent GST, while plug-in hybrids above the small-car category are taxed at 40 per cent, resulting in a 35-percentage-point differential with pure EVs. This substantial tax difference makes plug-in hybrids largely confined to premium and luxury segments, with most legacy carmakers exploring multiple fuel powertrains but focusing on pure electric vehicles for the mass market. The company is assessing customers' willingness to pay the higher price for plug-in hybrids while evaluating their potential introduction.
Volvo Cars India plans to launch three new electric vehicle models over the next three years, building on its current portfolio of two all-electric models - EX30 and EC40, alongside mild-hybrid XC60 and XC90. The company's next electric vehicle launch is expected to be the ES90 sedan, with Malhotra noting "Our strategy is very simple. We will bring one electric car every year." Currently, electric vehicles account for one-fourth of Volvo's sales in India, with the company selling 2,120 cars in 2023, 1,861 in 2024 and 1,630 in 2025, and 1,262 vehicle registrations recorded in the first nine months of 2026. The company's total portfolio now includes six models with plans to introduce one new electric car annually while continuing to sell mild-hybrid vehicles.
Volvo Cars India may be forced to raise vehicle prices due to geopolitical disruptions that have made shipping times unpredictable and increased costs, according to Managing Director Jyoti Malhotra. Speaking to PTI, Malhotra stated that while the company has not yet passed higher costs to customers, "We are getting very close to where we will be forced to pass this (higher cost) on to customers." The Swedish luxury carmaker previously raised prices by up to ₹1 lakh across its vehicle portfolio on May 1, citing persistent global supply-chain disruptions and foreign exchange rate fluctuations. Recent supply-chain disruptions have increased the cost and lead time for imported kits used to assemble cars in India, making vehicle deliveries unpredictable and having a considerable impact on sales volumes, though Malhotra declined to specify the exact quantum of impact.
Despite supply chain challenges, Volvo Cars India is focusing on strengthening brand awareness and customer experience in India rather than chasing sales volumes or market share in the near term. The company's strategy emphasizes building a balanced portfolio of electric vehicles and mild hybrids, while evaluating the potential for plug-in hybrid electric vehicles. To celebrate the EX90 launch, Volvo Cars India is offering introductory benefits on all bookings made before December 31, 2026, including an 11kW wall box charger and a 3-year service package. Additionally, Volvo Cars dealerships are offering a 65% buyback offer after 3 years, providing significant value proposition for early adopters as the company positions itself for continued electric vehicle expansion in the Indian market.
