Volvo announced on Thursday that it will be increasing the prices of its cars starting January 1, 2024. The Swedish carmaker said that the costs of its models across its lineup will increase by up to 2 percent next year. The company said that the decision to surge prices became crucial due to growing input costs and volatile foreign exchange rates.
Volvo started selling its models in the Indian market in 2007, and currently it exports vehicles through 24 dealerships in India. Volvo Car India sells two electric sports utility vehicles in India. Volvo launched its newest electric SUV, the C40 Recharge, earlier this year, while the XC40 Recharge was launched in 2022. The company also offers the XC60 and XC90 SUVs. It offers the S90 sedan with a petrol mild-hybrid engine.
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Volvo Car India has now become the fourth luxury carmaker to announce a price hike this year. Apart from the Swedish carmaker, BMW, Mercedes-Benz, and Audi have already announced the price hike for their luxury cars. The Managing Director at Volvo Car India, Jyoti Malhotra, stated that, “The decision to adjust prices is in response to evolving market dynamics, forex exchange rate fluctuations, and rising input costs. This move aims to maintain a crucial balance, ensuring the continued delivery of high standards and best driving experiences, reaffirming our commitment to uncompromised quality and safety."
Every model in Volvo's portfolio is manufactured at its Bangalore facility. The XC40 Recharge and C40 Recharge are the only two models that are sold via Volvo’s online platform. The manufacturer launched the C40 Recharge electric SUV in India in September this year. The C40 is available at an introductory price of INR 61.25 lakh (ex-showroom). It is powered by two electric motors mated to a 78-kWh lithium-ion battery set and an AWD drivetrain. The electric motors equipped in the EV generate peak power of 402 bhp and 660 Nm of maximum torque. The C40 electric can accelerate from 0-100 kmph in just 4.7 seconds at a high speed of 180 kmph.
