Volvo Cars will lay off around 1,300 office-based employees in Sweden as it steps up its cost cutting, the Swedish auto maker said on Thursday.

While the group's efficiency drive had begun to show results, more was needed, Chief Executive Jim Rowan said in a statement.

"Economic headwinds, increased raw material prices and increased competition are likely to remain a challenge to our industry for some time," Rowan said.

About 1,100 jobs will be cut at Volvo Cars' main global operating unit, Volvo Personvagnar, while the remaining 200 positions will be identified after a review of the company's entities across Sweden, the group said. (Reporting by Louise Breusch Rasmussen, editing by Terje Solsvik)