Speaking at the International Vienna Motor Symposium, group chairman Prof. Dr. Martin Winterkorn said the models would offer the same performance and range as conventional cars, but with greatly reduced CO2 emissions.

‘The electric car will impact the future of individual mobility in crucial ways, and Volkswagen is spearheading this technology,’ he said. ‘Over the mid term, the plug in hybrid offers great potential, because it combines the best of two worlds in one vehicle.’

Mr. Winterkorn says Volkswagen will target research funding towards developing better batteries for the new vehicles. To reduce emissions, it will also roll E85 ethanol powered engines globally, starting with Sweden and Finland, and is aiming to boost diesel sales in America with its new 2.0 litre TDI engine.