All our cars to have hybrid powertrain in India: Volvo country head

India may not figure in Volvo's top-10 car markets but the company remains doggedly determined to grow here. Ready to begin local assembly by the end of the year,

Volvo

Auto India is not just looking at expanding its product portfolio but offering products which are at par with those in western countries looking to reduce carbon footprint. In an interview with Timesofindia.com,

Tom von Bonsdorff

- MD, Volvo Auto India, reveals why future belongs to hybrid vehicles and how Volvo can assist in India's dream of ditching fossil fuels by 2030.

Excerpts from the interview:

Q: China has pushed for hybrid and electric vehicles in a big way. How do you see India's initiative in promoting clean fuels and vehicles?
It is very important for authorities in the country to design taxation policies - whether it is road tax, GST, toll, registration tax - effectively so that people buy environmentally-friendly cars. The need is urgent because Delhi air and air in severa other cities really needs it.

Q: India's environment minister recently said the country aims to be free of fossil-fuel-powered cars by 2030? What is your take on it?
I think that it is a great ambition. I think these type of ambitions really try to change us. But 13 years is a very shor time and it requires some drastic change. We need to kickstart activities to make sure that we can get there.

Q: What are Volvo's plans as far as hybrid and

electric cars

in India are concerned?
From our end, we'll have hybrid powertrain in all our cars from now on. In 2019, we will launch our first electric car (in India). We think we are ready for that development. Also, we look to have about 25 showrooms by the end of the year. So it's a big rise in network expansion.

Q: Will India get European trims in Volvo cars or should we expect downgraded versions in terms of features, interiors, engine and the likes?
We are basically selling the same cars across the globe and I think that is going to stay that way. So the same safety norms, environmental friendliness norms, design features remain constant everywhere - including India. Of course you have local demands on what people want to have in their cars - you don't need heated seats in south India whereas you need that in southern Europe. But when it comes to other features, we definitely want to bring everything.

Q: Volvo is soon going to begin locally assembling its cars in the country. What was the reason behind a move which most rivals made some time back?
The luxury car segment is still small in India - especially if you would compare it with China. We may not be the biggest seller but then, nobody else is either. I am not really worried about if we have lost ground (by not starting local assembly sooner). I see that we have good potential to grow into our targets.

Q: And is local assembly a move to become more competitive in terms of pricing?
The reason why we are going to local assembly is not really to reduce the prices. (But) We want to be priced on the same level as our competitors.

Q: How much has the company invested in the plant where the assembly would take place?

I cannot share those details as of now.

Q: Okay but what about the job creation and how does Volvo look at simultaneously expanding sales and post-sales network?
We have plans of expanding our dealer network from 18 to 25 by the end of this year and with local assembly, there would be added job creation.

Q: And would GST help in bringing more customers to these showrooms, considering a cut in prices is on the cards?
I think it is really good that we are getting GST because it is going to simplify many things for us and also be a good development for the country. If there is any price update, we would obviously pass on the benefit to our customers.