Volvo plans to roll out more hybrid cars in India in coming years; will launch its first all-electric car by 2020
Despite high rate of GST on the hybrid cars, several automakers are not stepping back from launching hybrid cars in India and Volvo is one of them after the Maruti Suzuki and Toyota. The Swedish luxury car manufacturer has confirmed that it will roll out more hybrid cars in the country in coming years in its strategy to introduce greener mobility.
Currently, Volvo sells the XC90 T8 Excellence plug-in hybrid in the domestic market. It has expressed its desire to launch its first all-electric car in the country by 2020 as well. Now, the brand has revealed its plan for more hybrids. Volvo is known for its drive toward greener mobility and the automaker has already said that it will produce only hybrid and electric cars in next three years.
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Considering its global strategy to produce only hybrid and electric cars and India being one of the major markets for the brand to grow, we see the possibility of an extensive range of hybrid and all-electric model lineup in the country from the Swedish brand. While revealing the brand’s future plan for domestic market, Volvo Auto India’s managing director Tom von Bonsdorff has also said government should reconsider the high rate of tax on the hybrid cars in order to promote green mobility.
Under the new tax structure, hybrid vehicles are slapped with 15% cess over and above the 28% GST that put these environment friendly cars in the same category with the luxury cars. Due to the high tax rate, Mahindra has already announced it won’t launch anymore hybrid cars here. However, Maruti Suzuki and Toyota has confirmed they won’t scrap their hybrid car projects.
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Due to the high rate of tax on hybrid cars, customers are likely to shy away from buying these eco-friendly vehicles. Apart from that, the government has withdrawn the subsidy it used to offer on hybrid and electric vehicles under the FAME scheme. All these factors make the case tougher for the buyers who plan to buy hybrid car.
Volvo XC90 T8 Excellence Plug-In Hybrid Gallery