Shipping disruptions may make price hikes inevitable: Volvo Cars India MD

Geopolitical disruptions have made shipping times unpredictable and raised costs for Volvo Car India, which may have to increase vehicle prices if the situation persists, its Managing Director Jyoti Malhotra said on Monday.

The company has so far been unable to pass on the higher costs to customers, but rising transportation costs for components are putting pressure on its business. “I don’t think we have been able to pass it on (through price hikes). But I think it’s inevitable, I would say,” he said.

Volvo Car India has raised prices once this year. On May 1, it increased prices by up to ₹1 lakh across its vehicle portfolio, citing persistent global supply-chain disruptions and fluctuations in foreign exchange rates.

The Swedish luxury carmaker on Monday launched its flagship EX90 electric sport utility vehicle in India at an introductory ex-showroom price of ₹1.26 crore. The vehicle has a claimed range of 625 kilometres on a single charge. Volvo Car India’s six-model portfolio comprises the XC60 and XC90, alongside four electric models — the EX30, EC40, EX40, and EX90.

In an interview with Business Standard on Monday, Malhotra said longer transportation times and the unavailability of shipping vessels were raising costs for raw materials and assembly kits shipped to India.

Delays that initially meant customers had to wait longer were now beginning to affect the company’s costs, he said. “If it continues like this, I think we have no choice but to pass it on,” he added.

The company could not provide a clear estimate of how much transportation times had increased over the past six months, as the situation continued to change.

“The kits start from port A and are supposed to go via port B, but get stuck there because they cannot find a carrier. The process has become very unpredictable,” he said.

Malhotra’s comments come as Volvo Cars faces pressure on its global business. On October 2, the Swedish automobile maker withdrew its full-year 2026 outlook, which had envisaged stronger sales in the second half of the year and strong positive free cash flow towards year-end. Volvo Cars said worsening market conditions in China and a slower-than-expected recovery in the US had weakened its near-term prospects.

Asked whether the withdrawal of the global outlook would affect India’s investment plans, vehicle launches or operations, Malhotra said, “From a global perspective, I cannot comment. From our perspective, I think the only challenge that we are facing right now is more from geopolitical issues.”

Volvo Car India plans to introduce one new electric car in India every year while continuing to sell mild-hybrid vehicles, which use a conventional engine supported by a small electric system. Battery electric vehicles run entirely on electricity.

Asked about Volvo Car India’s sales outlook for calendar year 2026 and whether it expected to record volume growth, Malhotra said the company was not focused on chasing sales volumes or market share in India. He said it needed to establish its brand and strengthen the customer experience, dealership network, and charging infrastructure before volumes could grow sustainably.

Volvo Car India sold 2,120 cars in 2023, 1,861 in 2024, and 1,630 in 2025, according to Vahan registration data. In the first nine months of 2026, the company recorded 1,262 vehicle registrations, the data show.

“In a luxury car market, I don't think chasing numbers and chasing (market) shares is the right thing, especially for us, when we are, as I said, younger,” he said.

Malhotra said Volvo Car India’s priorities were to offer the right products, improve the ownership experience and build the infrastructure needed to support customers. The company began assembling cars in India in 2017, and he said it was still laying the foundations for long-term growth in the market.