Volvo Predicts a Boom in India’s Luxury Car Market
New Delhi, March 4, 2025 – Volvo Car India’s Managing Director, Jyoti Malhotra, expressed a positive outlook for the Indian luxury car market, predicting its potential to double in size over the next decade. The optimistic forecast is fueled by the nation’s growing economy and the rising number of young consumers purchasing high-end goods.
“From an India perspective, our economy is on a strong trajectory and will only expand further in the coming years,” Malhotra stated in an interview with businessline following the launch of the new XC90. “If the Indian economy continues to thrive and the fundamentals remain solid, the luxury car market, which currently stands at over 50,000 units annually, could reach over one lakh units within the next ten years.”
In the calendar year 2024, the Indian luxury car market experienced a 6% year-on-year growth, reaching approximately 51,200 units, up from around 48,500 units in CY23. Volvo Car India, however, saw a slight decrease, retailing 1,824 units in CY24, a 13.55% drop compared to the 2,110 vehicles sold in CY23.
Malhotra also highlighted that the adoption rate of luxury electric vehicles (EVs) is expected to outpace that of mass-market EVs, a trend already becoming apparent. “The EV penetration in the mass market is approximately 2% at present, compared to 6-7% in the luxury segment. This trend will likely intensify in the luxury car sector because our buyers often own multiple vehicles and luxury cars typically offer a longer driving range, frequently exceeding 500 km per charge,” he noted.
Speaking about the recently launched XC90, Malhotra added, “This iconic SUV has been a cornerstone of our success, and we are excited to introduce the new XC90 to the Indian market. The SUV embodies the best of Swedish luxury and design, seamlessly incorporating innovation and safety, which are the hallmarks of the Volvo brand.” The new XC90, with an ex-showroom price starting at ₹1,02,89,900, is designed to prioritize safety. Key features include a robust safety cage and a comprehensive suite of active safety technologies. “Utilizing radar and a front camera, the new XC90 can detect unintentional lane drifts and automatically steer the vehicle back into its lane, helping to prevent collisions. It also includes run-off road mitigation and collision avoidance systems that can detect and react to other vehicles, pedestrians, cyclists, and even large animals,” Malhotra explained.
