Toyota has started leasing its Volvos in China and the automaker is hoping to fill a need in Asia.
The company said Thursday it has leased 5,500 of its 2018 and 2019 vehicles in the region.
Volvo, a maker of large SUVs and the most successful SUV brand in history, is planning to build 200 new luxury SUVs, the company said in a news release.
Volvo will have an initial fleet of 2,000 vehicles in China, and it plans to expand to other countries over the next two years.
Volvo expects the Chinese market to account for 70% of the total volume of its business.
The U.S. market is expected to account at least 25% of Volvo’s total sales.
The Volvox and XC60 have sold well in China over the past two years, according to Toyota, and the company is also planning to add vehicles from Japan and other Asian markets to the fleet.
The new vehicles are expected to cost between $27,000 and $32,000.
In the U.K., which has long been a big seller of luxury SUVs, Volvo is starting to sell luxury vehicles for the first time in a decade.
The Volvo Xc90 is expected in Britain from mid-2018.
Volvo is also selling a new SUV, the XC40, in the U, and is considering a new model in China.
Toyota has also said it will lease its new Volt for a year, the largest lease in the world.