Volvo Sees Potential for Massive Growth in Indian Luxury Car Market
New Delhi, March 4, 2025 – According to Jyoti Malhotra, Managing Director of Volvo Car India, the Indian luxury car market has the potential to more than double in the next decade. This optimistic outlook is driven by the country’s robust economic growth and the increasing number of young consumers purchasing luxury goods.
“From an India perspective, there are a few things which we know for sure – one is, our economy is on a good path and it will become an even bigger economy in the next few years…so if the Indian economy does well as we progress and if all the basic things are in place, the luxury car market, which is at 50,000-plus (in 2024) units, can grow at one-lakh plus per annum, in the next one decade,” Malhotra stated during the launch of the new XC90.
The luxury car market in India experienced a 6 percent year-over-year increase in calendar year 2024, reaching approximately 51,200 units compared to 48,500 units in CY23. Volvo Car India, however, saw a slight decline in sales, retailing 1,824 units in CY24, which is 13.55 percent less than the 2,110 units sold in CY23.
Malhotra also highlighted the rapid adoption of luxury electric vehicles (EVs) compared to mass-market EVs. “In the mass market, the penetration of EVs is around 2 percent right now compared to 6-7 per cent in the luxury segment and I think this will only become more and more as far as luxury cars are concerned because typically our (luxury) buyers are multi-car owners and luxury cars typically have a much longer range…”
Speaking about the new XC90, Malhotra said, “This iconic SUV has long been a cornerstone of our success, and we are thrilled to unleash the new XC90 onto the Indian market. The SUV embodies the pinnacle of Swedish luxury and design, seamlessly integrating innovation and safety, the hallmarks of the Volvo brand.”
The new XC90, with a starting price of ₹1,02,89,900 (ex-showroom), is designed with safety as a priority. It features a robust safety cage and an array of active safety technologies. Using radar and a front camera, the XC90 can detect unintentional lane drifts and automatically steer the vehicle back into its lane. It also includes run-off road mitigation and collision avoidance systems designed to detect and react to vehicles, pedestrians, cyclists, and large animals, Malhotra explained.
