Volvo Car Corporation has decided to introduce its cars in India, with sales scheduled to start during the fourth quarter of 2006. The new subsidiary, Volvo Car India, will have its head office in Delhi. Volvo Cars will start its product introduction with the Volvo S80 and the Volvo XC90 and the plan is to introduce more models on the Indian market in due course.

India is experiencing very favourable economic growth with low inflation and a stable currency. Total new-car sales on the Indian market are expected to increase from 1 million cars per year to 1.6 million over the next four years.

Volvo Car India will establish three dealerships in 2006 and the prestige models in the company’s range, the Volvo S80 and XC90, will be the first to be marketed.