Volvo has become the first traditional carmaker to signal the end of the internal combustion engine by saying all its cars will have an electric motor in three years` time.
The Chinese-owned firm, best known for its emphasis on driver safety, is not killing petrol and diesel altogether.
By 2019 all of its cars will be either all-electric, or hybrids which combine electric and conventional engines.
Volvo`s move puts pressure on Tesla, the start-up maker of electric cars.
On Sunday, it announced that it will start deliveries of its first mass-market car, the Model 3, at the end of the month.
Elon Musk, Tesla`s founder, said the company was on track to make 200,000 Model 3 cars a month by December.
Tesla`s market value overtakes Ford
His company`s rise has upset the traditional power balance of the American car industry.
Tesla, which makes no profits, now has a stock market value of $58bn, nearly one-quarter higher than that of Ford, one of the Detroit giants that has dominated the automotive scene for more than a century.
China shift
As well as a shift west - from Detroit to California`s Silicon Valley, where Tesla is based - Volvo`s electric move underlines a shift eastwards, to China.
Geely, Volvo`s Chinese owner, has been quietly pushing ahead with electric car development for more than a decade.
"This announcement marks the end of the solely combustion engine-powered car," said Hakan Samuelsson, chief executive of Volvo`s car-making division.
"People increasingly demand electrified cars, and we want to respond to our customers` current and future needs," he said.
Elon Musk`s greatest rival may come from China, rather than closer to home.
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