Volvo plans to expand its range of eco cars in Japan by introducing diesel models there by the end of next year.

The company plans to introduce its new four-cylinder engine with 60% fewer parts and 35% better fuel economy. It emits 20% less carbon dioxide than petrol models.

Pricing has yet to be announced but the cars likely will cost several hundred thousand yen more than petrol cars of similar size.

Volvo’s sales in Japan sales rose 52% year on year to 12,000 units in 2011 and are projected to climb another 20% to 14,000 this year.

Volvo Cars Japan has already announced plans to introduce plug-in hybrids from 2015.

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