Swedish car giant Volvo Cars India expects modest sales growth this year

Volvo Cars India anticipates flat sales growth in 2025 due to a combination of macroeconomic challenges and forex fluctuations but remains optimistic about 2026 and 2027

Swedish car giant Volvo Cars India expects 2025 sales to be flat owing to a combination of factors, including forex fluctuations and the macroeconomic situation.

 

Jyoti Malhotra, managing director (MD), said, “We had anticipated this year to be a modest growth year, and it's progressing in that direction. It is a combination of macro and micro factors.”

 

“Forex creates one challenge. This whole year, we have lived in a lot of uncertainties — whether it is geopolitics or forex. So, we are in a bit of a fluid situation now,” he said.

 

Malhotra added that for a combination of factors, this year is going to be a bit challenging. The festival season will bring some good news and things will look up, he said.

   

“As it stands today, we will have a flattish or low growth,” he said, adding that 2026 and 2027 would be better years.

 

Volvo Cars did not share its 2024 calendar year sales.

 

On Friday, Volvo launched the new XC60 after it rolled out the XC90 in March.

 

XC60 is globally popular and now India will have a rejuvenated version of the car. The mild hybrid vehicle will be priced at ₹71.9 lakh. 

 

When asked if the ₹50-90 lakh segment is witnessing increased competition with the entry of Tesla and MG’s premium vehicles, Malhotra said competition is always welcome.

 

He also added that premiumness is not determined by the price, but by various luxury features and luxury brands carmakers offer.

 

Volvo is bringing in the EX30 electric vehicle by the end of 2025. The car would be produced locally as a completely-knocked down unit.

 

Electric vehicles (EVs) had a penetration of 25 per cent in Volvo’s overall India sales during 2024.

 

Penetration of EVs is likely to grow further in India, Malhotra said.

 

He added, “The government is clearly focusing on electrification, or battery EVs, and not really on hybrids. Electrification of the luxury market will continue. Mass market has also improved from 2 per cent to over 4 per cent, but the luxury market has grown by a much higher level.”

 

The share of EVs in the luxury segment rose from 7 per cent in January–May 2024 to 11 per cent during the same period in 2025. This marks a 66 per cent growth in the electric luxury segment.