Will consider Plug-in Hybrid in India if the tax structure is favorable: Volvo Car India MD

The Swedish luxury car manufacturer Volvo will consider taking plug-in hybrid vehicles in India if the tax structure is beneficial, which is not the case at the moment, said a top official of his Indian arm on Friday.

Volvo Car India, which launched the renewed version of its best -selling model in India XC60 at an introductory price of RS 71.9 Lakh, believes that the access of new players such as Tesla is good for making electric vehicles popular, the director Jyoti Malhotra told reporters here.

The renewed XC60 is assembled in the Bengaluru facility of the company, he noticed.

“We have a series of mild hybrids and plug-in hybrids … That is the range that we have in this car (XC60) worldwide … Our global portfolio has it, but the Indian tax structure is not really conducive from today,” said Malhotra when the company is asked whether the company would consider the plug-in hybrid version of the model.

He also noted: “If things change, we can always bring it. So we keep a close eye on.”

According to the current regulations, hybrid passenger vehicles of up to 4 meters and up to 1200 cc attracts petrol engine and up to 1500 cc diesel engine with 28 percent GST. On the other hand, hybrid passenger vehicles of length above 4 meters or above 1200 cc petrol engine and above 1500 cc diesel engine are loaded at 28 GST with 15 percent extra stop. “The mild hybrid that we have offered today with the current (tax) structures we have in India, I think this is most suitable because we can offer the best value to our customers,” said Malhotra, adding “, but if things change, you can always bring it”.

When asked for an increase in competition with Tesla’s accession in India, he said: “I would say that we are not looking at anyone as a competitor. They are all different car manufacturers, they are colleagues, they are all welcome to come. I think India needs more, the more the happier.”

Malhotra claimed that Indian customers need a choice, said Malhotra: “We are a huge country. A good thing that I can say is that we have seen a lot of interest in electric cars in the last 6-7 months, we have seen a lot of interest in new generation cars and I think it is good … So the entry (from Tesla) is good for the customers.”