Volvo Cars plans to raise India prices as rising input, logistics costs hit automakers

New Delhi: Volvo Cars India said geopolitical challenges are putting massive pressure on input as well as logistics costs which is likely to make the luxury carmaker look at raising prices in the near future.

“For us, I think what we have seen, input class, of course, are increasing…shipping, logistics are becoming very, very challenging. The turnaround time has increased. The cost of shipping is going up. So I think the cost increases are inevitable. We will have to pass it on to customer at some point of time”, Jyoti Malhotra, Managing Director at Volvo Cars India told ET. Malhotra was speaking on the sidelines of the launch of it’s flagship electric vehicle the EX90.

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Malhotra said the company, which is seeing nearly a fourth of it’s sales come in from EV, will launch a new electric car in the Indian market every year but will continue to offer mild hybrid versions of the internal combustion engine (ICE) vehicles. “We want to bring one (electric) car every year”, Malhotra informed.

He declined to share the proportion of car sales the company is targeting from EVs mid-term but said it should definitely rise with the new launches. Volvo Cars currently sells four vehicles in India, including two electric cars. Two more EVs - the SUV EX90 and sedan ES90 - are set to go on sale shortly.