In the Indian market, Volvo Cars India has announced a hike in the price of the mild hybrid model currently on sale in the country. The price hike will affect models such as the XC40, XC60, S90 and the XC90 mild hybrid. Sweden’s automaker Volvo has implemented the price hike with immediate effect. This will increase the prices of these models by 2% over the current ex-showroom prices. Volvo attributes the price hike to the announcements made during the Union Budget 2023 earlier this month.
Following the price hike, the ex-showroom price of the XC40 B4 Mild Hybrid has been increased from Rs 43.20 lakh to Rs 46.40 lakh. The XC60 B5 Mild Hybrid will now cost Rs 67.50 Lakh (ex-showroom), the S90 B5 Mild Hybrid will now cost Rs 67.90 Lakh (ex-showroom), while the XC90 B6 Mild Hybrid will now cost Rs 98.50 Lakh (ex-showroom).
The price hike for these models was necessitated after Finance Minister Nirmala Sitharaman proposed a hike on cars sold in India through the CBU or CKD route in Budget 2023. Jyoti Malhotra, Managing Director, Volvo Car India, said, “The cost of petrol mild-hybrid models has increased due to changes in customs duty announced in the recent budget.
Volvo C40 Electric SUV
Customs duty on vehicles costing less than $40,000 as a completely built-up vehicle (CBU) or with an engine capacity of less than 3,000 cc for petrol-powered cars and 2,500 cc for diesel-powered vehicles increased from 60 per cent to 70 per cent. The automaker will soon start production of the Volvo C40 electric SUV, which is expected to be launched soon.