Swedish automaker Volvo will hike car prices this month post the revision in customs duty. The prices of the Volvo cars will be increased by 5 percent in the country. This move is a result of the government's decision to increase the customs duty on completely knocked-down (CKD) kits and fully-imported vehicles in the Union Budget 2018.
Speaking about the price hike, Charles Frump, MD, Volvo Car India said, “The increase in duty came as a surprise and will have a short term impact on the automobile industry. What I would have liked to see is a much needed incentive for hybrids and plug-in hybrids as these solutions have an immediate impact on the environment. Volvo Cars' vision is aligned with the Indian government’s vision of going full electric but till we get to full electric, the interim is hybrids."