The vehicle, which is the result of close co-operation between Volvo Cars and Swedish energy supplier Vattenfall – is based on the standard V60 and combines a five-cylinder 2.4-litre D5 turbo diesel, which produces 215bhp and maximum torque of 440Nm to drive the front wheels, with an electric motor on the rear axle producing 70bhp and powered by a 12kWh lithium-ion battery pack. The Plug-in Hybrid can be charged via a regular household electricity socket at home or elsewhere. Charging time is about five hours if the car is recharged at home.

The V60 hybrid offer three modes of driving: "Pure" mode, which offers fully electric driving with a range of up to 32 miles and zero emissions; the default "Hybrid" setting, which gives carbon dioxide emissions averaging 49g/km; and "Power", which offers the driver the combined output of 285bhp, 640Nm of torque and acceleration from 0 to 62 mph in 6.9 seconds.

'The second-generation hybrid is the perfect choice for the uncompromising buyer who wants a superbly carbon dioxide-lean car packed with driving pleasure. To get drivers to think green, we have offered both, in one traditional genuine sports wagon,' said Stefan Jacoby, president and CEO of Volvo Cars. 

Although Volvo said that the technology is still undergoing development and testing, it added that the car already provides a clear indicator of what customers can expect when the vehicle goes on sale next year.

Pricing has not been announced, however Volvo said that the cost of the battery pack means the Plug-in Hybrid will be more expensive to buy than a Volvo V60 with a normal combustion engine, although fuel costs are expected to be one-third of the conventional car.