Volvo has confirmed it will put a plug-in hybrid into series production by 2012.
The Swedish firm has previously shown off a plug-in hybrid Volvo V70, although it hasn’t confirmed which models will benefit from the new powertrain.
The car has the ability to run up to 31 miles on pure electric power alone, which will be enough to carry 75 per cent of all European journeys, according to Volvo.
When the electric power runs out, a small diesel engine kicks in to give it a combined range of around 745 miles, with CO2 emissions of 50g/km and combined fuel economy of 148.6mpg.
Stephen Odell, president and CEO of Volvo, said: “The new Volvo plug-in will be a truly enjoyable car to drive, featuring Volvo's high safety and comfort standards. At the same time, CO2 levels and fuel consumption will be as low as half that available on the market today.
“We are focusing strongly on plug-in hybrids in order to meet the demands for low CO2 emissions and to provide sustainable road transportation. We naturally expect that the relevant authorities will offer subsidies to boost developments, speeding up the creation of a market for this type of car.”