Volvo India has cut the prices of its flagship sports utility vehicle XC90 by Rs 4 lakh to boost sales amidst the current economic downturn. The XC90 D5 will now come at Rs 42.5 lakh, while the XC90 32 and XC90 V8 would be available for Rs 43.5 lakh and Rs 49.5 lakh, respectively. The company also announced opening of new dealerships at Pune and Chennai, taking the total number of dealerships in the country to seven.

“In lieu with current economic scenario and to provide luxury at right price, the prices for the flagship model Volvo XC90 SUV has been reduced by 7-8.5% with effect from July 9,” Volvo India said. “The expansion of our dealer network signals the importance of the Indian market to Volvo Cars. We believe that India holds tremendous potential for our brand and want to make sure that we fully capitalise on the opportunities available,” Volvo Car India MD Paul de Voijs said.

Recently, other car makers including Hindustan Motors, Ford India, Honda Siel Cars India and Hyundai Motor India had announced price cuts of Rs 6,000 on some of their models following additional duty excise reduction announced by Finance Minister Pranab Mukherjee during the Budget on July 6.

The Volvo XC90 Ocean Race Edition has been launched in two colours, Blue Pearl and Electric Silver metallic colour. It sports an exclusive Ocean Race emblem on the side fender and the roof rails. While the five-seater SUV costs Rs 50 lakh, the seven-seater is priced at Rs 51.5 lakh. Volvo plans to sell 25 XC90 Ocean Race Editions in India.

A total of 10,000 special edition cars are expected to be sold worldwide as part of the nine-month long Volvo Ocean Race. At different stopovers, the limited editions would be launched. In India the limited edition was launched in connection with the Volvo Ocean Race Kochi stopover.

Volvo is currently marketing its products through four dealerships which are located at Delhi, Mumbai, Hyderabad and Chandigarh. The compaany is fully importing its cars and there are no plans at present to set up a plant.

Volvo India has launched a new variant of the XC90, the R-DESIGN. The Volvo XC90 R-DESIGN comes with a 4.4L V8 petrol engine producing 315hp of power and 440NM of torque. The R-DESIGN is a 7 seater and comes with 19 inch wheels. Its priced at Rs. 58 lacs ex showroom, Delhi.