Launching The XC40 Recharge Was A Big Learning: Volvo India MD Jyoti Malhotra

Swedish carmaker Volvo has now been in India for over 15 years. The Scandinavian brand has always been the underdog when it comes to luxury cars in India simply because it has made exclusive cars that just weren't flashy enough. As the brand went through a change globally - first the design language and then the move to pure electric - the new Volvo is slowly and steadily clawing its way into the hearts of Indian luxury car buyers as well as its rivals’ market share.

Also Read: Volvo C40 Recharge Makes India Debut; Launch In August 2023

At the unveiling of its second electric car for India, Volvo Cars India MD Jyoti Malhotra pointed out how the company has garnered a 25 per cent market share in the burgeoning luxury EV segment the previous month. 'It's a small overall number. The ticket size isn't too big, but it is a good number for us," he said while speaking exclusively to carandbike following the debut of the C40 Recharge.

The C40 Recharge will be launched in India in August 2023.

What made it even more fascinating was that it has managed to secure a quarter of the market with just one model. The XC40 Recharge hit the sweet spot with customers looking to make a statement and stand out from the crowd. It being relatively more accessible than most luxury cars has also helped, but the success wasn't without some tough learnings.

Also Read: Volvo EX30 Electric SUV Revealed: Entry-Level Volvo EV Has Up To 480 KM Range

While Volvo Cars India first announced its intent to launch the SUV in 2021, it was launched only a year later as Volvo, along with the rest of the industry, battled supply-chain and then semiconductor issues which hampered production. Volvo had already started assembling its cars in India, near Bangalore, and getting kits was a constant battle.

"Bringing XC40 Recharge into India was a big learning. We are better prepared this time," said Malhotra. "C40 Recharge will be at showrooms with dealers when we announce prices, which is something that didn't happen during the XC40 Recharge launch as customers couldn't even see the vehicle beyond the metaverse previews despite bookings.”

The XC40 Recharge has helped Volvo acquire a quarter of the luxury EV market in India.

While launching an electric vehicle in an SUV body style made more sense, Volvo isn't shying from experimenting with a coupe-SUV body style derived from the XC40. Malhotra claims this is to offer customers a totally different experience.

Also Read: Volvo XC40 Recharge Deliveries Cross 200 Units In India

"They (XC40 and C40) are two very different cars. We already have attracted customers with an SUV in that segment but we have to expand the pool. The C40 Recharge is an even more futuristic looking car which should attract a different set of customers - especially those who don't like a conventional SUV shape.”

The C40 Recharge by nature of its concept is more aerodynamic and promises a better range than the XC40, too. While the battery pack size is the same, Volvo says there have been enhancements during the time between the global launches of XC40 and C40 Recharge.

While the C40 will be more expensive than the XC40 Recharge despite operating in a similar segment, Malhotra sees an opportunity with the coupe-SUV.

Waiting period for the XC90 currently stretches to well over a year.

“I think I've been saying this the most important thing is to expand the pond for electric cars. So, someone who has say Rs 60 lakh and planning to buy a car, now, the choice is to buy either an ICE or an EV. We will offer a good option right now for the latter. We want more customers to cross the line and move over. The C40 Recharge will, I'm sure, help us expand the pond.”

While the reduced cost of running an EV is now widely accepted, practicality is still debated. While this exists in the luxury EV segment too, Malhotra feels it is also a bit different.

This (EV) is a new animal. People have been using internal-combustion engine cars forever

“This (EV) is a new animal. People have been using internal-combustion engine cars forever. They know when they make a decision, where, what they are buying, what they are getting into. EV is that a new thing. Those are the uncertainties as a company that, we are trying to address.”

While an 8-year warranty for the battery pack is now standard on many cars, Malhotra feels this spells peace of mind for the customer. “Nobody keeps a car for eight years,” he reminds. “Eight years is like a lifetime. Additionally, we are offering a three-year service backup as part of the price. So, now, the uncertainties are gone.”

Also Read: Volvo EX90 Electric SUV Start Of Production Pushed To 2024

While charging infra remains a big question mark and is not always in direct control of a carmaker, Volvo is of the belief that more than DC fast chargers, a solid home charger is the apt solution for luxury EVs.

“Even if there is public charging everywhere, do you think that a luxury electric car owner will stand and get his car charged? They want home charging. By home charging I basically mean in their premises. It can be at home, it can be at the factory, it can be at their office.”

A reliable home charging solution is what luxury EV buyers in India seek, as per Volvo India MD Jyoti Malhotra.

While coupe-SUVs aren’t really a rage in India, Malhotra feels it will still add to Volvo’s volumes, as the customer set is a bit different.

“In most markets, I think the SUV and SUV-coupe are at almost 50-50 share. It balances in a way and ultimately it adds to our volumes.”

Interestingly, the average age of a Volvo car customer in India is coming down and it is also seeing a lot of female customers. In fact, in the XC40 Recharge, it is as high as 40 per cent. Malhotra attributes it to the fact that EVs are also generally easier to use, and the users themselves are their biggest spokespersons.

So, any challenges ahead? Plenty, says Malhotra.

“We are much better than what we were last year, but challenges are not going away”

“We are much better than what we were last year, but challenges are not going away and they are coming in different forms and shapes. If any one supplier doesn’t get a particular part, maybe the whole chain stops. Global supply chains have been badly affected. Logistics are not as streamlined as before. I think being a small player, it is very challenging.”

Currently, the model with the highest waiting period in the Volvo line-up is the XC90 with customers having to wait over a year. The minimum waiting period for a Volvo is still four months (for the S90). While some of it has to do with production woes, most of it has to do with rising demand for its cars in India. With an increased EV portfolio, and an early start, Volvo should be better prepared than ever to ride the new electric wave.