Volvo desperately wants to launch the S60/V60 PHEV hybrid in China to cash in on the emerging lust for high tech premium hybrids. However, Volvo’s PHEV is powered by a 215hp 2.4 liter turbo diesel mated to a 50hp electric motor. Diesel engines are forbidden in most Chinese cities, hybrid or not.

Volvo will therefore develop a new PHEV variant based around a four-cylinder turbocharged petrol engine.  The new PHEV is expected to arrive on Chinese shores in late 2014, priced around 300.000 yuan. The PHEV will be imported in to China, unlike the new petrol powered Volvo S60L sedan that will be made locally in a brand new factory. Local production of Volvo hybrids will commence further in the future.