The Volvo V60 Plug-in diesel hybrid car will cost from 47,000 (or 42,000 including the Government's electric vehicle grant) when it goes on sale next year.
The V60 Plug-in Hybrid is powered by a 212bhp 2.4-litre diesel engine, which drives the front wheels. The rear axle is driven by an electric motor, which provides a further 69bhp. The car has a six-speed automatic gearbox.
A 11.2kw lithium-ion battery pack is secreted beneath the boot floor. This can be charged from the mains, or boosted by the diesel engine's alternator as well as by recapturing energy generated by the brakes. The batteries are then used to power the electric motor that drives the rear wheels.
On average, the V60 Hybrid returns a stunning 148.6mpg and emits just 49g/km of CO2.
There are three driving modes available: Pure, Hybrid and Power. By selecting Pure the car has enough power to drive for 32 miles on electric power alone, says Volvo.
Selecting Hybrid engages the diesel engine to increase performance, so much so that the car can tow up to 1800kg.
Power mode ushers in a combined output of 276bhp, which Volvo claims is meaty enough to dust off the 0-62 sprint in just 6.9secs.
The car comes in Volvo's Electric Silver colour, rides on 17-inch wheels and has Plug-in Hybrid logos on the boot and front wings. It also gets front and rear parking sensors, Bluetooth, a DVD audio system and a seven-inch display screen.
Owners can also download Volvo's OnCall smartphone app, which allows the user to access a number of the car's systems such as the air-con remotely.
Order books open in the spring, with first deliveries expected towards the end of 2012.