Geopolitical disruptions have made shipping times unpredictable and increased costs for Volvo Cars India, which may have to raise vehicle prices if the situation continues, its managing director, Jyoti Malhotra, said on Monday.
The company has so far been unable to pass on the higher costs to customers, but the rising cost of transporting components is putting pressure on its business. “I don't think we have been able to pass it on (through price hikes). But I think it's inevitable, I would say,” he said.
Volvo Cars India has increased prices once this year. It raised prices by up to Rs 1 lakh across its vehicle portfolio on May 1, attributing the increase to persistent global supply-chain disruptions and fluctuations in foreign exchange rates.
The Swedish luxury carmaker on Monday launched its flagship EX90 electric SUV at an introductory ex-showroom price of Rs 1.26 crore and with a claimed range of 625 km on a single charge. It now has six models in its portfolio, including four electric models — EX30, EC40, EX40 and EX90 — alongside the XC60 and XC90.
Malhotra, in an interview with Business Standard on Monday, said longer transportation times and the unavailability of carriers (ships) were increasing costs for raw materials and assembly kits shipped to India.
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Delays that initially meant customers had to wait longer were now beginning to affect the company's costs, he said. “If it continues like this, I think we have no choice but to pass it on,” he added.
The company could not provide a clear estimate of how much transportation times had increased over the past six months, as the situation continued to change.
“The kits will start from port A, are supposed to go via port B, and get stuck in port B, and doesn't move from there, doesn't find a carrier, so it is becoming very unpredictable," he noted.
Malhotra's comments come as Volvo Cars faces pressure on its global business. On October 2, the Swedish carmaker withdrew its full-year 2026 outlook, which had envisaged stronger sales in the second half of the year and strong positive free cash flow towards year-end. The company said worsening market conditions in China and a slower-than-expected recovery in the US had weakened its near-term prospects.
Asked whether the withdrawal of the global outlook would affect India's investment plans, vehicle launches or operations, Malhotra said: “From a global perspective, I cannot comment. From our perspective, I think the only challenge that we are facing right now is more from geopolitical issues.”
Volvo plans to introduce one new electric car in India every year, while continuing to sell mild-hybrid vehicles, which use a conventional engine supported by a small electric system. Battery-electric vehicles run entirely on electricity.
Asked about the company's sales outlook in India for calendar year 2026 and whether it expected to record volume growth, Malhotra said Volvo was not focused on chasing sales volumes or market share in India. He said the company needed to establish its brand and strengthen its customer experience, dealership network and charging infrastructure before volumes could grow sustainably.
Volvo Cars India sold 2,120 cars in 2023, 1,861 in 2024 and 1,630 in 2025, according to Vahan registration data. In the first nine months of 2026, the company recorded 1,262 vehicle registrations, according to Vahan data.
“In a luxury car market, I don't think chasing numbers and chasing (market) shares is the right thing, especially for us, when we are, as I said, younger,” he noted.
He said Volvo's priorities were to offer the right products, improve the ownership experience and build the infrastructure needed to support customers. The company began assembling cars in India in 2017, and Malhotra said it was still building the foundations for long-term growth in the market.