Volvo XC40, XC60, XC90, S90Price hike announced on mild-hybrid models

By India Today Auto DeskVolvo Car India has increased the prices of its mild-hybrid models, including the XC40 SUV, XC60 SUV, XC90 SUV and S90 sedan, in the range of 1% to 2% owing to the rise in customs duty as announced in the Union Budget 2023.

Below are the new prices (ex-showroom) of Volvo models in India.

• Volvo XC40 B4 Mild Hybrid – Rs 46.40 lakh
• Volvo XC60 B5 Mild Hybrid – Rs 67.50 lakh
• Volvo XC90 B6 Mild Hybrid – Rs 98.50 lakh
• Volvo S90 B5 Mild Hybrid – Rs 67.90 lakh

“The changes in customs duty as announced in the recent budget have resulted in an increase in input costs of our petrol mild-hybrid models. This has resulted towards marginally increasing the price of our mild hybrids,” said Jyoti Malhotra, Managing Director, Volvo Car India.

As per the Union Budget 2023, the vehicles imported in semi-knocked down (SKD) form now attract a customs duty of 35%, up from 30%. However, the 3% social welfare surcharge (SWS), which was levied earlier, was removed.

For those in completely built unit (CBU) form, other than the ones with cost, insurance, and freight (CIF) value of over USD 40,000 or with engine capacity of more than 3,000cc for petrol models and 2,500cc for diesel models, or with both, customs duty was increased to 70% from 60%. But the 6% SWS, charged earlier, was removed.

A customs duty of 70% is now imposed on electric vehicles (EVs) in CBU form, except for those with a CIF value of more than USD 40,000. It was 60% earlier. But here also, the 6% SWS collected earlier was removed.

Volvo locally assembles the XC40, XC60, XC90, S90 and the all-electric XC40 Recharge SUV at its Bengaluru plant.