Swedish luxury carmaker Volvo today launched its compact crossover vehicle V40 'Cross Country' priced at Rs. 28.5 lakh (ex-showroom Delhi) as part of plans to increase sales in India by around 50 per cent this year to about 1,200 units.
The company's Indian arm Volvo Auto India has also tied up with Bajaj Allianz for vehicle insurance in the country.
"The car will bring in new impetus to our growth strategy in India. So far we have bookings of about 70 units and our target is to sell about 120 units this year," Volvo Auto India Managing Director Tomas Ernberg told reporters here.
He said the company will also have two new launches -- fresh models of sedan S60 and SUV XC60 -- in October to rev up sales.
"Last year, we sold about 800 units and the target for this year is around 1,100 to 1,200 units," he added.
In the first quarter of this year, the company sold 276 units, up 140 per cent from the year-ago period.
The V40 Cross Country will directly take on BMW's X1 which is priced between Rs. 27.9 lakh and Rs. 32.5 lakh (ex showroom Delhi).
The vehicle is powered by a 2 litre, 5 cylinder diesel engine. The company claims it has a mileage of over 16 kmpl.
Asked if the company planned to start assembling its vehicles in India, he said, "We will continue to import completely built units. Yes, in the long run, we would need to assemble here."
Volvo Auto India has set a target to sell 20,000 units per annum by 2020 in the country, by when it could be consider having assembly operations.
Currently, Volvo Auto India sells four models, XC90, XC60 (SUVs) and S80 and S60 (sedans) here.