New Delhi, Jan 5 : Swedish auto major Volvo Tuesday launched a new bus powered by compressed natural gas (CNG) for the Indian market to take on rivals like Tata Motors and Ashok Leyland.

"This CNG variant is being built at our plant near Bangalore. It has six seats more than other luxury buses on the Indian roads," said Volvo Bus India managing director Akash Passey at the Auto Expo here.

"Our prices are a bit higher than others. We are in talks with various governments including the Delhi government. Our buses have all additional security features as required like temperature control," Passey told IANS. He did not spell out the cost of the new vehicle.

"With the Volvo CNG bus, we are now ready for an even larger share of city bus segment."

The company, which has sold 540 non-CNG buses in 2009, has set a target of selling at least 1,000 units this year, he added.(IANS)