Exclusive: Volvo Cars to introduce ethanol-compatible vehicles in India, says Martin Persson
Volvo Cars plans to introduce a new electric vehicle annually, starting with the EX30 SUV in India, says Martin Persson, Head of Volvo Cars APEC. The company will also launch ethanol-compatible vehicles, aligning with its 2040 net-zero emissions goal. Persson expects significant growth in India over the next 4-5 years, driven by expanded product offerings and increasing appeal to environmentally conscious consumers. He emphasizes Volvo’s commitment to sustainability and brand positioning.
Volvo Cars has set a bold strategy to introduce one new fully electric vehicle every year. This initiative commenced with the successful launch of the XC40 Recharge in 2022, followed by the C40 and the single-motor XC40 Recharge. Looking ahead, Martin Persson, Head of Volvo Cars APEC in an interview with CNBC-TV18 said that the EX30, a new SUV, will be the next addition to Volvo’s electric lineup in India.
Acknowledging the global push towards alternative fuels, Persson affirmed Volvo’s intention to introduce vehicles compatible with ethanol fuels (ranging from E20 to E80) in India. This move aligns with Volvo’s broader sustainability goals, aiming to achieve net-zero greenhouse gas emissions and adopt circular economy principles by 2040.
Persson remains optimistic about Volvo’s growth prospects in India over the next 4–5 years. While refraining from specifying exact figures, he anticipates significant growth driven by expanding product offerings and heightened brand appeal among environmentally conscious Indian consumers.
Below are the edited excerpts:
Q: In terms of future electric launches, what would you like to add to the portfolio? What can we expect?
Persson: We have a clear strategy here that every year we’re going to launch one new fully electric car, and the first one out was the XC40 Recharge that came back in 2022. Then we had the C40 and this year we have the single-motor XC40 Recharge. Next up is the EX30, our next SUV, and then after that we will continue this strategy with one new car every year.
Q: In terms of alternate fuels, this seems to be a big push area for the government to roll out more ethanol-powered vehicles, flex-fuel vehicles from capacity anywhere between E20 to E80, where does Volvo find itself in that play? Would you like to bring such fuel technologies to India?
Persson: Definitely. I mean, sustainability is a very important part of our DNA. And it’s also a very important part of our future. We have a goal by 2040 to be a net-zero emitter of greenhouse gases and a circular company. As part of that strategy, we are always looking at how can we improve our sustainability contribution and performance. And next up in India is exactly what you said. We will bring out the XC60 and XC90 for E20 fuel.
Q: India is a very exciting market for you compared to some other markets that have matured. And you see a lot of growth potential in India. But if you feel that there are certain regulatory bottlenecks or hurdles to growth or to putting more investments on the table, what would those be?
Persson: Every market is distinct, right? Every market has its challenges here and there. I wouldn’t say India is more difficult than somewhere else, but of course, we need to take a careful look at India and see what go-to-market approach fits India, and that’s exactly why I’m here. So I’m here now to understand what we need to do to capture the full potential of the Indian market.
Q: Give us a sneak peek into your thinking. You’re here to take the India market to the next level. You spoke about strengthening the brand or positioning it better in India as much as possible. One or two ways you would like to do that. Is it through more touchpoints, a more aggressive marketing strategy, or higher capex, what would that be?
Persson: I think it’s a mix of everything. Our growth plan for India will be a comprehensive plan. But you mentioned brand; I think brand is very important. When you’re in the luxury segment, the brand is the differentiator, of course, your product as well, but the brand becomes a very important part of the consumer’s choice. We have a very distinct brand positioning, what we call Volvo for Life, where we provide the freedom to move in a safe, personal and sustainable way. So safety has always been our core, but we are now moving more and more into explaining our sustainability story and what we are doing in the sustainability area.
Q: If I were to ask you about the next 4-5 years, what kind of annual growth are you expecting from the Indian market for Volvo?
Persson: We are at a completely different level in terms of sales, and some of that would have been driven by the product launches. If you go 4-5 years ahead, our range of products would have expanded quite dramatically. That will drive growth. The brand image will help us attract customers because the environmentally conscious consumer is increasing in India and that is a good fit with our brand. I’m very confident that now India is perhaps a smaller market in my region, but I do expect that it will be a significant market over the next couple of years.
Q: If you had to quantify that growth in percentage terms?
Persson: I think it’s not easy to say. I’m here to understand India. It’s a bit early for me to say, this is exactly where we are going. I’m working with the management team here locally and I will go back now and then we will put that plan together. The only thing I can say is that we will have significant growth over the next couple of years.
Source Link: https://www.cnbctv18.com/business/volvo-cars-electric-ethanol-vehicle-suv-india-launch-19437766.htm
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