Saar: It wants to leap ahead of its rivals from Germany, Japan and England in the race to locally make “greener” cars.

Volvo is on a mission to sell a million electrified vehicles by 2025. To support that claim, the Swedes made an announcement last year which, and we quote, read:

“There will in future be no Volvo cars without an electric motor.”

The company further confirmed that starting 2019 it will completely shift focus to producing hybrid and pure electric vehicles. This, as the company claimed, is part of its goal of counter-balancing the environmental impact of its cars. This simply means that from next year onwards, whatever model Volvo Cars produces, it will have one or more electrified variants. That’s in addition to the variants housing conventional internal combustion engines.

Since India is one of the largest and fastest growing automobile markets in the world, no major manufacturer can afford to ignore it. And neither will Volvo. According to a report from ET Auto, Volvo Cars India is planning to upgrade its production facility so that it can assemble hybrid cars locally. This way it can leapfrog its rivals from Germany (Mercedes-Benz, BMW, Audi), Japan (Lexus) and England (Jaguar Land Rover) to make more ‘green’ cars in India itself.

Just to be clear, four out of five vehicles that Lexus sells in India feature a hybrid powerplant. But none of the Lexus models is produced in India and hence they all attract steep import taxes. In Volvo India’s case, only one vehicle has a hybrid powertrain – the XC90 T8 Excellence. Once the Swedes start assembling hybrid cars in India, they will be able to price them more competitively too.

While speaking to the correspondent from ET Auto, Charles Frump, MD, Volvo Cars India reportedly said:

“It is a not a question of if, but when we will start assembling hybrid vehicles in India. There are various studies going on and we are trying to convince the government on why hybrids are an important bridge towards complete electrification.”

Presently, hybrid cars fall under 28 per cent tax slab under GST (Goods and Services Tax). Additionally, they attract a cess of 15 per cent which takes the total to 43 per cent. This steep tax tag on hybrids has hampered plans from Toyota and Honda, with their Camry Hybrid and Accord Hybrid respectively failing to attract any significant number of buyers.

Volvo Cars India currently makes the XC90 and the S90 at its production facility near Bengaluru, Karnataka. Soon, the XC60 and the V90 Cross Country will also enter production in the same facility. That’s because the company is planning to expand its footprint in India. It is reportedly eyeing to almost doubling its dealership count in India to over 40 in the next 2-3 years. The next-in-line model, which will launch mid-2018, is the smallest SUV that company has ever built – the XC40.

Also Read: Volvo And Alibaba Jointly Develop Smart Infotainment System