New Delhi, Sept. 23 -- Volvo Cars, one of Sweden's leading car manufacturers, is increasing its U.S. production capacity and focusing on domestic production to avoid tariffs and meet demand in one of its largest markets.

Volvo, owned by China's Geely, announced the plan on Tuesday. According to Yahoo Finance, Volvo plans to build a fourth vehicle currently on the assembly line in Ridgeville, South Carolina. The vehicle will be a next-generation hybrid developed for the US market.

This summer, Volvo said it also plans to bring its best-selling XC60 midsize SUV to its South Carolina factory in late 2026. The XC60, made in Gothenburg, Sweden, is an important vehicle for Volvo in the US. Demand for the XC60 is currently surging, with sales ...