Volvo will launch an all-new stand-alone pure-electric car in 2019 that will do battle with both the Nissan LEAF and Tesla Model 3.
According to Brit mag Autocar, the new model will be heavily based on the 40.2 concept, and the production version will receive only minor design changes.
Looking more like a four-door coupe than a traditional hatchback, the new 40.2 battery-powered car will be positioned above Volvo's forthcoming S40 and V40 core models.
It is based on the Swedish car-maker's new Compact Modular Architecture (CMA), which was created to underpin pure-electric vehicles, but Volvo has not confirmed what battery will power its 40.2, nor how powerful its electric motors will be.
Instead, its R&D boss Henrik Green said the small Volvo hatch will come with a range of around 500km.
Confirming the 40.2 will be offered with different power output and battery options, the announcement of the car-maker's first pure-electric model follows on from Volvo's declaration that it will electrify every model in its line up from 2019.
Once launched, it's expected the next pure-electric offered by Volvo will be a battery-powered version of the recently launched XC40 SUV.