Swedish premium luxury auto-manufacturer in India announced a price hike of their cars because of an increase in inflationary trends caused due to rise in input material costs. According to the updated price hike, Volvo’s flagship SUV – XC90 B6 inscription model will now cost Rs90.90 lakh (ex-showroom), 1 lakh more than the current price. S90 B5 Inscription gets the highest-ever price hike of 3 lakh costing it Rs 64.90 lakh (ex-showroom). XC40 T4 R Design and XC60 B5 Inscription now cost Rs43.25 lakh and Rs63.50 lakh, respectively. There will be no change in the price of their luxury sedan S60 as of now. The entire price, as mentioned earlier, would be effective from January 1, 2022.
Volvo India has an ambitious electrification plan for a greener future in mobility. They have completely phased out their diesel lineup in India, and currently, their portfolio only offers petrol and petrol mild-hybrid options. Volvo has already committed to the electrification goal, and they plan to sell around 50 per cent of pure electric cars by 2025 along with hybrid.
A volatile forex situation and COVID-19 restrictions are responsible for the increased costs of inputs. Not just Volvo, every global auto manufacturer is hit by inflationary trends. We may expect the price hikes from another manufacturer soon.
“As with rest of the Indian auto industry, Volvo Car too has been impacted by rising input costs. Much as we would have wanted to maintain prices, the situation has left us with no other option but to share some of the input costs increases with customers. While there is no change in the price of our luxury sedanS60 and our Plug-in hybrid XC90 T8, we are compelled to announce a price increase in all our other cars and SUVs ranging from one to three lakhs. This would be effective January 1, 2022. Says Mr Jyoti Malhotra, Managing Director, Volvo Car India.