The renowned Swedish luxury car manufacturer Volvo would be cutting down diesel cars from India by the end of this year. Alongside, it would gradually move over to electrics cars as the company works towards local assembly of green cars.

The company, owned by China’s Geely, strategies to launch one electric car per year as it shifts its car portfolio to sustainable mobility, in terms with the global plans of its parent for a complete transition to green, says Jyoti Malhotra, the new MD of Volvo Cars India.

The company unveiled its first full-electric car meant for India ‘XC40 Recharge’ compact SUV and this would be introduced towards the beginning of the festive season towards the end of this year and it is likely to be priced around Rs. 45 lakh. Jyoti states that the company is considering local CKD (completely knocked down) operations as the GST on electrics is about five percent against 45-50 percent on larger petrol/diesel cars.

Volvo Cars India plans to take a lead in the space by garnering 80 percent of its total sales from battery operated electric vehicles by 2025. To keep prices competitive, the organization has additionally commenced a study to evaluate opportunities to commence localisation of full electric vehicles in the country.

Jyothi says, “Luxury will take the lead in full electrification. We had earlier expected the plug-in hybrid to be a bridge to full electrification, but with strong government intent, we expect the shift towards complete electrification much faster. There is a growing consciousness towards the environment from a potential luxury car buyer. The path is laid; the move towards electrification will only accelerate”