Electricity is accepted by carmakers as the new-age fuel, and deadlines to go fully electric have been announced by almost every auto giant. Volvo has also made it clear that it will go fully electric from 2023 globally. However, the carmaker is eyeing to sell only electric cars in the Indian market after 2025. The company currently sells the Volvo CX40 Recharge in the country, and has confirmed that the compact SUV will be joined by its coupe-sibling called the Volvo C40 Recharge. The company will launch the electric version of its SUV C40 in the fourth quarter of 2023 and will continue to launch an electric vehicle every year in the country. Being a niche player, the company can afford to be a battery electric vehicle (BEV)-only manufacturer compared to its competitors, said Nick Connor, head of commercial operations, Rest of Asia Pacific, Volvo Cars.
“I think we will accelerate. We may not do it this year, maybe in 2025. We said we will be 50 per cent electric (globally) by then, we can say well in India, we will be 100 per cent are going to happen.” For example, we have already said in Australia that by 2026 we are going to be 100 per cent electric.” Connor, who prior to his current role was the Managing Director of Operations for Volvo Cars Australia, has led the company’s electrification journey in India. Responding to a question on plans.
“We have seen (in Australia) a very rapid growth towards battery electric vehicles. It has taken us by surprise. I think it could be good here (in India) because we are not a mass producer, we You have the luxury of being able to separate yourself,” he insisted.
However, the challenge is that the pure BEV luxury segment is currently very small and not large enough for the company to be viable in the market, he said, adding that for the time being the company will have to continue selling petrol cars. and mild hybrids.
“As the market develops, we will move to BEVs. The tipping point will come much earlier for us,” Connor said. Volvo Cars’ current Indian portfolio includes the sedan S90 along with the fully electric XC40 Recharge, SUVs XC90, XC60 and XC40. On the importance of the Indian market, he said, “India is a very important focus market for our region. We see it as possibly the fastest growing market in the region with the largest, most long-term potential.”
Volvo Cars saw a strong demand for its XC40 BEV, which was launched in India late last year, it said, adding that sales last year were constrained only by supply and demand was many times higher than supply in India and around. Was. rest of the world
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“We will launch the C40 BEV, a pure electric vehicle, in the fourth quarter of this year. We have already seen a lot of demand for that car in the markets where we have already launched it. Let’s expect demand. We will have the XC40 BEV in India,” Connor said.
Both the XC40 BEV and C40 BEV will be imported as completely knocked down units and will be assembled at the company’s Bengaluru plant. “I think it’s very important for us to produce as many cars locally here as possible to meet local demand.”
In terms of EV sales vis-a-vis the company’s total sales in India, he said, “We haven’t set hard and fast targets for India or really any other market because of production uncertainties. But I think the global percentage will be 11 per cent.” (last year), or (18 per cent in Q4 2022), we would like to be at a similar level or maybe a little stronger for India. Last year, the company sold around 1,800 units in India and in 2018 It was expected to record its best ever sales, bettering the previous highest sales of 2,600 units.
With inputs from PTI