Volvo to assemble hybrid electric vehicles in India from next year
Published Date | 2018 November 23
Volvo Cars to locally assemble SUV XC 90 plug-in hybrid in India and it will only launch electric or hybrid vehicles from the next yearIndia: Volvo Cars will commence local assembly of the hybrid electric version of its premium sports utility vehicle XC90 T8 by the end of next year, the Swedish luxury carmaker said. This will be the first locally assembled plug-in hybrid vehicle (PHEV) in the country. Volvo Cars plan to roll out four more PHEVs over the next three years as it moves towards phasing out combustion-engine only models in a bid to curb pollution, the company said. "The localization of plug-in hybrids marks the future of electrification for us," said Charles Frump, Managing Director, Volvo Cars India. "Our customers are increasingly becoming aware of the rise in pollution levels and degrading environment. As a responsible luxury car company, we believe electrification is the future. However, till the time we have a supporting infrastructure, plug-in hybrids offer the intermediate solution." The announcement of manufacturing plug-in hybrids in India marks a new phase of the company's business in India where the government is aiming 100% electrification of vehicles by 2030. In a PHEV, the battery can be recharged by plugging it into an external source of electric power. The plug-in hybrid version of XC90 will roll out of the Bengaluru facility in the last quarter of 2019. Currently, the hybrid version of XC90 is imported as completely built units (CBUs). Volvo has been fast to bring its global models into the country. It is now studying how the Indian arm can bring in its first fully electric car, which is slated for global launch in 2019. According to BlueWeave Consulting, India automotive industry is at the flourishing stage, supportive government policies and high public & private sector investment in the region are booming the industry. Over the years the automotive industry will witness phenomenal growth with high investment from foreign investment companies. Increase in per capita income and rise in urban population has surged the demand for automobiles leading to higher revenue generation in the region. Prominent automotive companies are willing to enter into the market through acquisition and partnership, further government supportive policy is positively impacting the market. Companies are focusing on controlling cost, improving efficiency and utilization of alternative energy engines. Electric vehicles (EVs) are the most fuel-efficient reduces emissions and significantly lower energy costs, thus EVs are on high demand. Thus in near future, the market will witness significant growth. According to the report by BlueWeave Consulting on “Global Electric Commercial Vehicles Market, By Propulsion, By Vehicle Type, By Component Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2024”, the global electric commercial vehicle is projected to grow over a CAGR of 12% during the forecast period of 2018-2024 by value. The market is expected to reach around USD 149,316 Million by 2024. The demand for electric vehicles and charging station is governed by an increase in demand for fuel-efficient, high-performance, and low-emission vehicles. In addition, the trend of reduction in vehicular emission due to stringent rules & regulations in several countries and growth of public charging infrastructure in China, India, and the other developed countries are fuelling the market growth. According to the recently published report by BlueWeave Consulting on “Global Electric Vehicle Charging Station Market, By Product Type, By Installation Type, By Suppliers Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, the growth is attributed to an increased deployment of charging stations at public places such as shopping malls, commercial buildings, airports, and restaurants. The convenience of being able to use an EV charger while shopping or during office hours is expected to boost the adoption of electric vehicles. Furthermore, government offerings, such as tax credits, on the installation of publicly accessible stations are expected to boost the market.