With a view to expanding its footprints and remaining competitive in the country's auto market, luxury car maker Volvo Car India today reduced prices of its SUV 'Volvo XC90' by up to 8.5 per cent and announced the opening of two new dealerships.

''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 per cent with effect from today,'' the auto maker said in a statement.

The Volvo XC90 comes in three variants - D5 Diesel, 3.2L and 4.4L V-8 Petrol. The company's two new dealerships have come up in Pune and Chennai.

''The expansion of our dealer network signals the importance of the Indian market to Volvo Cars,''said Volvo Car India Managing Director Paul de Voijs.

Volvo Car India launched two of its flagship models, Volvo S80 and Volvo XC90 in the country in September 2007.