In a move reflecting Volvo’s evolving global strategy, Volvo Car India is recalibrating its product portfolio by maintaining a balanced focus on internal combustion engine (ICE) and battery electric vehicles (BEVs). The launch of the new XC60 marks a clear signal that the carmaker is not stepping away from ICE, but rather strengthening it to cater to current market dynamics, even as it remains committed to long-term electrification.
Volvo announced its ambition to become a fully electric carmaker globally by 2030. However, recent global updates reflect a more flexible path — aiming for 90% electrified sales by 2030, including BEVs and plug-in hybrids (PHEVs).
In India, this strategic shift has led to a recalibrated approach. While Volvo remains committed to growing its BEV share, it also reinforces its ICE offerings, with the XC60 being a key part of that mix. "We never gave up on ICE," said Jyoti Malhotra, Managing Director, Volvo Car India. “We’ve just fine-tuned our strategy to serve both segments.”
From BEV-Only to Balanced Portfolio Strategy
The new XC60, which remains Volvo’s best-selling model globally and in India, is expected to add momentum to the brand’s sales during the upcoming festive season. “We’ve timed this launch well, and we believe it will bring back customers who were waiting,” Malhotra noted, highlighting the growing relevance of premium ICE models amidst fluctuating EV adoption trends.
Volvo had earlier faced a period of subdued growth, and this refreshed product is seen as a catalyst to regain commercial traction in 2025. Expectations are of stronger momentum by 2026.
EV Goals Intact, But Timelines Adjusted
Volvo Car India had earlier targeted 50% BEV sales by 2025, but Malhotra admitted that this milestone may now be pushed to 2026 or 2027, depending on infrastructure and market readiness. “The direction hasn’t changed — the timeline might,” he said.
Challenges around charging infrastructure, consumer education, and policy volatility have slowed full-scale EV adoption. That said, Volvo’s BEV range — led by the C40 Recharge and the upcoming EX30 — will continue to expand.
ICE Still Relevant for Indian Consumers
Malhotra was candid in his assessment of the Indian market: “There is a customer base for ICE, and another for BEVs — and we will serve both.” He added that even among BEV buyers, usage patterns vary significantly, and that plug-in hybrids could become a viable bridge technology if pricing and taxation become favorable.
Globally, Volvo has shut ICE sales in markets like Thailand, moving entirely to PHEVs and BEVs. However, ICE remains relevant in India, particularly given the cost sensitivities and infrastructure constraints.
Volvo Car India is not pivoting away from its electric vision but is pragmatically reinforcing ICE to maintain relevance and meet immediate customer needs, claims the company. The new XC60 underlines that approach. With a realigned timeline for electrification and a refreshed ICE portfolio, the company is now positioning itself to manage both short-term market realities and long-term transformation goals amid intense German rivalry to carve its own space.