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The Volvo XC90 T8 Twin Engine has been confirmed as qualfying for the £5000 UK Plug-in Car Grant scheme from the Office of Low Emissions, dropping its on-road price to £54,955.
The T8 is powered by a 320hp petrol engine and an 87hp electric motor. It emits 49g/km of CO2, returns 134.5mpg and can deliver 26 miles of pure electric range.
The grant has criteria to encourage manufactures to decrease the level of outputted CO2 emissions. To achieve this, hybrid vehicles must emit less than 75g/km, a minimal travelling range of 10 miles and must reach a speed of at least 60mph.
Volvo claimed a 40% tax payer could pay as little as £100 BIK a month.
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