Volvo Cars is counting on its first sport-utility vehicle, the XC90, to halt declining US sales, Bloomberg News said.

"In the US, customers have been leaving us because we don't have a sport-utility, and some people don't come into our showrooms because we don't have one," director of XC90 development Hans Wikman told Bloomberg.

Volvo's sales fell 17% this year to the end of July in the United States, its biggest market. The XC90 is to go on sale in October, and the company aims to sell 50,000 annually, including 35,000 in North America, Bloomberg said.