Volvo Car India on Monday said it has increased prices of most of its products by up to Rs 2 lakh with immediate effect in order to partially offset the impact of rising input costs.
The company has hiked the ex-showroom prices of its luxury sedan S90 and premium SUVs XC40, XC60 and XC90 with effect from May 3, the Swedish luxury car maker said in a statement.
The models will see an upward price change ranging from Rs 1 lakh to Rs 2 lakh, it added.
After the price hike, S90 D4 Inscription is now priced at Rs 60.9 lakh, XC40 T4 R Design at Rs 41.25 lakh, XC60 D5 Inscription at Rs 60.9 lakh and XC90 D5 Inscription at Rs 88.9 lakh (all prices ex-showroom).
The company, however, said there would not be any change in price for the newly introduced compact luxury sedan S60, which would continue to be tagged at Rs 45.9 lakh.
"Our commitment to the Indian market and our customers is reflected in the fact that while the Indian auto industry went through price escalation across the spectrum, we at Volvo Cars maintained the prices of all our products for three years since 2018.
"We are however now faced with a situation where rising input costs leave us with no other option but to share some of these costs with the customer," Volvo Car India Managing Director Jyoti Malhotra stated.
The company may have to relook at the prices and take further increases later in the year, depending on how input costs develop, he noted.
Volvo had last announced price increase in 2018 and thereafter has maintained the price line for all its products.
The decision comes as a result of increased cost in production, a volatile forex situation over the years and the impact of COVID-19 pandemic on the routine business set up, the company said.
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