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Jyoti Malhotra, MD, Volvo Car India
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BIJOY GHOSH
Calling India’s free trade agreement (FTA) with the UK for the import of luxury cars a benchmark, the Volvo Group has said that an FTA with the European Union (EU) would also make European cars eligible for equivalent benefits, making them more affordable.
“These trade agreements are always welcome because free trade offers us two benefits – one, I think it brings competition…it will benefits customers at the end – and you get access to other markets as well. So, it is a win-win for the industry because for the last so many years we are hovering around 50,000 units (sales of the luxury cars in a year),” Jyoti Malhotra, Managing Director, Volvo Car India, told businessline on the sidelines of a new launch here.
He said luxury car is a niche and completely knocked down (CKD) units are the best solution as of today for companies like Volvo in the absence of an FTA with the EU.
“It opens up the probability of bringing some completely built unit (CBU) cars. Indians are value conscious and they understand how much they are paying for the car and the tax,” he noted.
India-UK deal
Recently UK and India signed the FTA called the Comprehensive Economic and Trade Agreement (CETA), in which both countries have agreed to a duty reduction up to 10 per cent, in over five years, for luxury cars in quota. After that, duty reduction has been made 50 per cent over 10 years for out-of-quota imports.
However, there are no concessions for electric, hybrid, and hydrogen-powered vehicles in the first five years of implementation of the agreement.
Currently, India imposes 110 per cent custom duty on CBU vehicles, which are more than 3,000 cc in petrol and over 2,500 cc in diesel.
Meanwhile, Volvo Car India on Friday launched the refreshed version of XC60 Mild Hybrid, at an introductory price of ₹71.90 lakh (ex-showroom).
The XC60 is the company’s best-selling car in India and has sold more than 5,600 units since 2018.
Published on August 1, 2025
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