Zhejiang Geely Holding Group, which acquired Sweden's Volvo Car Corp. earlier this year, began selling cars online Monday in China, according to Xinhua, the country's national news agency.

Geely said it has opened a virtual flagship store on Taobao Mall, one of China's biggest consumer Web sites.

Geely said it would sell Gleagle Panda-branded cars and planned to add more, including models specially designed for online customers and auto interior products, according to Xinhua.

Traditional dealers will offer test-driving and after-sales services to online customers, Geely said.

Online shopping is growing in importance in China. In June, the country had 420 million people with online access. Taobao has 300 million registered users.