The scheme is intended to offer incentives for buyers to choose new ultra-low carbon cars and the addition of the V60 plug-in to the list of eligible cars will bring the purchase price down to £43,775 OTR.

Ian Howat, head of product and pricing at Volvo Car UK, said: ‘The V60 Plug-in Hybrid has been a worldwide success with the initial run of 1000 cars sold out before the car reached the showrooms. Now that we have received the UK Government's plug-in grant I'm sure the world's first plug-in diesel hybrid will become even more attractive to UK customers wishing to purchase leading vehicle technology.’

The 2014 Volvo V60 Plug-in Hybrid will be unveiled at next week's Geneva motor show and features a number of updates to the styling of the interior and exterior whilst continuing to offer the three “Pure”, “Hybrid” and “Power” driving modes, enabling the driver to choose between performance or economy considerations.

Full price and specification levels are expected during April, with customer deliveries taking place from July.