Volvo end to diesel

Calcutta: Sweden's Volvo Car India will stop the production of its diesel powertrains in the next six years as it aggressively pursues its electric mobility vision. Globally, Volvo will start producing only petrol and electric models of its cars from 2019.

"In the next six years, we will completely shift away from diesel in line with our global policy," said Charles Frump, managing director, Volvo Car India, while inaugurating a showroom in Calcutta on Friday.

Volvo has announced 50 per cent of its sales will be from electric cars by 2020, and the company expects much of these sales from India.

"We are totally in sync with the government's electric mobility vision. We need to chalk out the path to electric mobility in the coming years. We feel that hybrids in all its forms - mild hybrids, hybrids and plug-in hybrids - are the way forward towards electrification," said Frump.

The company finds the GST taxation of 43 per cent a hump on the path.

"We are in talks with the government on the taxation structure. We are in discussion with Niti Aayog regarding our electric vehicle plan and we shared our global electrification strategy too. We are committed to bringing more and more electrified cars in India, " the Volvo MD said.

Having the first-mover advantage among luxury cars in hybrids and EVs, Frump said: "We definitely want to be leaders in making environment-friendly vehicles. We are in a position to be an alternative to the German luxury car makers." Incidentally, the government's 43 per cent tax on hybrids is lower than the 52 per cent GST on luxury vehicles and SUVs.

Volvo India