Swedish luxury vehicle maker Volvo Car will start the production of its popular XC60 crossover model in China in early 2015.

Volvo's latest move is part of its US$11 billion expansion plans spread over five years that aim to make available more luxury and sports utility models.

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The plan is also an indicator of the growing Chinese market for luxury vehicles after sales in China during the first 10 months of 2014 increased by 36 percent compared to 2013 to 65,827 units, while sales for the XC60 jumped 29 percent to 26,343 cars. Volvo has enjoyed 14 consecutive months of higher sales in China but suffers from weak sales in the U.S, reports The Wall Street Journal.

The XC60 would be the second Volvo car to be manufactured in China after the company started to produce the S60L model at its Chengdu facility in November 2013.

Hakan Samuelsson, chief executive of Volvo, said the production of the XC60 in China plays a vital role in the overall growth of the Volvo brand in the international market.

Since the XC60 rolled out in 2008, Volvo has sold over half a million units globally, although its total sales pale in comparison to the volume of vehicle made by its competitors such as Volkswagen, Ford Motor and Honda. Volvo targets to double its yearly sales to 800,000 vehicles by 2020 as it aims to eat into the share of other luxury car brands such as Daimler, Mercedes-Benz and BMW.

According to Samuelsson, the bulk of the Volvos to be made in China would still be exported to the U.S. as it attempts to eat a larger slice of the American automobile market partly dominated by Japanese manufacturers.

Volvo's Chengdu facility is capable of making 120,000 vehicles yearly, but for 2014, it only expects to churn out 35,000 S60Ls and XC60s. The firm also has a plant in Daqing which assembles a variant of the first-generation Volvo XC90 geared for the Chinese market, according to Reuters.

Tagsvolvo, luxury car, xc60, car maker, car manufacturing, Chengdu