Volvo Car has announced that it has decided to sell cars in India. The new subsidiary, Volvo Car India, will have its head office in New Delhi, the company's CEO Fredrik Arp said.

Volvo said it would begin its product introduction with the Volvo S80 and the Volvo XC90 models, with plans to introduce other models on the Indian market in due course.

"It is an important step for Volvo Cars to establish a presence on this market at a time when India is showing considerable growth in the passenger car market," Arp said.

Volvo Cars said it expects the total new-car sales on the Indian market to increase from one million cars annually to 1.6 million over a four-year period.

"This gives us an excellent foundation for starting sales of Volvo cars on this market," Volvo Car India's Managing Director Paul de Voijs said.