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.

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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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