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Volvo India holds back plug-in hybrids as 40% GST on PHEVs dwarfs 5% on EVs
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Volvo Car India will skip plug-in hybrids because 40% GST (up to 43% with cesses) on PHEVs dwarfs 5% on BEVs, so its dealers will sell only mild hybrids and EVs, nearly one in four of its sales, at least until CAFE phase three begins in April 2027.
Watch
PHEV GST cut below the 40% rate before CAFE phase three starts in April 2027 would mean Volvo reopens its PHEV case and hybrid-heavy rivals gain pricing room.
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What else has Volvo Car India done in the last three months?The report
Volvo Car India will not bring plug-in hybrids to India soon, citing 40 percent GST on PHEVs against 5 percent on BEVs and uncertain customer willingness to pay. It will stay focused on mild hybrids and EVs, which are nearly one in four of its sales.
- PHEV GST40 percent
- BEV GST5 percent
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Reported figures
From the report. Source details below
| Total PHEV tax including cesses: | up to 43 percent |
|---|---|
| Electric cars share of Volvo India sales: | nearly one in four |
| CAFE third phase effective from: | April 2027 |
What to track next
- Any GST rate change on PHEVs, or on the cesses that take the rate up to 43%
- Volvo Car India's EV and electrified share against the nearly one in four now
- Final CAFE phase three norms and how they treat plug-in hybrids
- PHEV launch announcements in India by rival luxury brands
The source
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