Unlike the V60 Plug-in Hybrid, which launches in Europe late next year, the XC60 isn’t based on a diesel engine. Instead, it uses a 280bhp four-cylinder turbocharged petrol unit from the carmaker’s forthcoming Volvo Environmental Architecture engine family, designed to be modular to cut development costs and more economical than outgoing powerplants.

The electric drivetrain is similar to the V60, however. This features a 70bhp, 147lb.ft electric motor powering the rear wheels with a battery housed under the boot floor, giving a range of 35 miles. Combined with the petrol engine, this can also offer automatic four wheel drive and a 350bhp power output, but with the added advantage of up to 122.8mpg.

Plug-in Hybrid XC60 models will be badged “T8”, and the concept car is finished in the same flat white paint as those that previewed the V60 Plug-in Hybrid.

Stefan Jacoby, President and CEO of Volvo Car Corporation , commented: ‘A plug-in hybrid is the ideal eco-car for today's conditions. It gives a large proportion of motorists sufficient range on electricity for their daily commute. More than half of U.S. drivers cover less than 30 miles a day.

‘With its three driving modes, the XC60 Plug-in Hybrid Concept also offers the owner a conventional model's interior space, safety, performance and long range. It gives the driver uncompromising flexibility to cover every type of motoring need.’

‘The combination brings the ingenious plug-in hybrid solution into the global context we are aiming for with all our car models. The gasoline version has great potential in several markets that are vital for our ambitious growth plans, such as the United States, China and Russia,’ he added.