Swedish luxury carmaker Volvo on Thursday said it will increase prices of select models in India ranging between Rs 1 lakh and Rs 3 lakh from January 1 to offset rising input costs.
Under the revised prices, Volvo Car India said its SUV XC40 T4 R Design variant will cost Rs 2 lakh more at Rs 43.25 lakh, while XC60 B5 Inscription SUV will be priced at Rs 63.5 lakh, an increase of Rs 1.6 lakh.
Similarly, the company's sedan S90 will be costlier by Rs 3 lakh at Rs 64.9 lakh, while the top-end SUV XC90 will cost Rs 1 lakh more at Rs 90.9 lakh from the beginning of the next month.
Explaining the reason behind the price hike, the company said, "Over the past few years, a volatile forex (foreign exchange) situation, disruption of global supply chains, owing to pandemic induced restrictions and inflationary trends, have led to increased costs of inputs."
As with the rest of the Indian auto industry, Volvo Car has also been impacted by rising input costs, Volvo Car India Managing Director Jyoti Malhotra said.
"Much as we would have wanted to maintain prices, the situation has left us with no other option but to share some of the input costs increases with customers," he added.
Malhotra said while there is no change in the price of our luxury sedan S60 and Plug-in hybrid XC90 T8, the company has been "compelled to announce a price increase in all our other cars and SUVs ranging from one to three lakhs. This would be effective January 1, 2022".
Recently, Volvo Car India transitioned to an all-petrol portfolio, with all diesel models being phased out.
Companies like Maruti Suzuki, Tata Motors, Mercedes-Benz, Audi, Citroen and Tata Motors have already announced plans for price hikes from January.