Volvo Cars said it will add 1,300 jobs and boost production at a plant in Sweden in the first quarter to meet rising demand for new cars, including the new flagship XC90 SUV.

The XC90 “is expected to further grow the company’s sales volumes during 2015, creating a need for increased output from the Torslanda plant in Sweden where the new car is to be produced,” Volvo said in a statement.

The automaker said it would add a third working shift at the plant, which has the capacity to produce 300,000 cars annually. The total number of employees in Torslanda is expected to rise by almost 40 percent to 4,600.

The factory currently produces the S60, S80, V60, V70, XC70 and XC90 models.

Volvo’s global deliveries rose 9 percent in the first nine months. The company expects to sell about 470,000 cars for the whole year, representing a 10 percent increase over 2013 and an all-time sales record for the company.

Volvo aims to sell 800,000 cars by 2020 and make inroads into a premium market dominated by Mercedes-Benz, BMW and Audi.