Volvo Cars India has joined the list of luxury carmakers passing on the benefits of GST 2.0 to its customers. The company has reduced the prices of two of its most popular models — the XC60 and the XC90. The revised prices will be effective from 22 September 2025.
Interestingly, while petrol and diesel models have seen a reduction, the electric range remains unchanged as the tax structure for EVs was not revised.
New Prices for Volvo XC60 and XC90
Volvo’s two best-selling SUVs are now more affordable:
- Volvo XC60: Price reduced by Rs. 4,79,333. Now available at Rs. 67,10,667 (ex-showroom).
- Volvo XC90: The flagship SUV gets the maximum cut of Rs. 6,92,660. New price is Rs. 96,97,240 (ex-showroom).
This move makes the XC60 and XC90 more competitive in their segment, especially against German rivals like Audi, BMW, and Mercedes-Benz.
Why Electric Models Remain Unchanged
While customers of the petrol and diesel models benefit from GST 2.0, Volvo’s electric cars remain at the same price point. This is because there has been no change in the tax structure for electric vehicles under GST 2.0.
However, EV buyers can still benefit from state-level subsidies and central government incentives that continue to promote clean mobility in India.
Volvo’s Festive Strategy
Volvo has smartly combined the GST benefits with its “Double Festive Delight” campaign. Along with lower prices, customers may also get additional festive offers like finance deals, extended warranty packages, or exchange bonuses.
This is expected to boost sales during the festive season when many Indian families prefer to buy new vehicles.
What Volvo Says
Jyoti Malhotra, Managing Director of Volvo Car India, said that the company’s aim is to make luxury mobility more accessible. By passing on GST benefits in full, Volvo wants to attract more customers and strengthen its position in the Indian luxury car market.
He also added that this move shows Volvo’s confidence in the growth of premium cars in India, especially during the festive months.
Impact on Indian Luxury SUV Market
The reduction in prices of the XC60 and XC90 makes them more appealing against rivals. Buyers who were earlier considering only German brands might now look at Volvo as a value-rich alternative.
With safety, Scandinavian design, and advanced features already being Volvo’s strengths, the new price advantage could play a key role in increasing its sales numbers.
FAQs
Which Volvo car got the biggest price cut?
The Volvo XC90 received the highest benefit with a reduction of nearly Rs. 7 lakh.
From when are the new prices effective?
The revised prices are effective from 22 September 2025.
Why are electric Volvos not cheaper?
There is no change in the GST slab for electric cars, so their prices remain the same.
Will there be extra festive discounts?
Yes, apart from GST benefits, Volvo is running a festive campaign that may include finance schemes and warranty offers.
How much cheaper is the XC60 now?
The XC60 is cheaper by Rs. 4.79 lakh, bringing its price down to Rs. 67.10 lakh (ex-showroom).
Conclusion
Volvo India’s decision to reduce prices of the XC60 and XC90 under GST 2.0 is a welcome move for luxury SUV buyers. With savings of up to Rs. 6.92 lakh, these models have become more attractive in the premium SUV segment.