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.