Swedish luxury car manufacturer Volvo is mulling plans to establish assembly plans in emerging economies, including India, and has already started conducting a viability study in this regard.

Volvo aims to double its sales from current 440,000 units to nearly 800,000 units by the year 2020. In the Indian sub-continent, the manufacturer aims to increase sales by 20,000 units per year by the current decade's end.

Volvo Auto India said in a statement, "It makes sense to set up a car manufacturing facility in India as we target sales of 20,000 units by 2020 here. conducting feasibility report of setting up a facility in emerging economies including India."

The global car giant also announced that it would increase the price of its cars across its entire model range by up to 5 per cent with effect from January. It blamed the combination of hike in import costs and inflation for its decision to increase the prices of its cars.

Volvo recently opened its 11th Indian dealership in Ahmedabad. The company has teamed up with Autobots to run the Ahmedabad dealership, which hopes to sell nearly 150 cars in 2013. Going on with its expansion plans, the luxury car maker aims to open two more dealerships across the country in 2013.