Carmaker Volvo has said all new models will have an electric motor from 2019.
The Chinese-owned firm, best known for its emphasis on driver safety, has become the first traditional carmaker to signal the end of the internal combustion engine.
It plans to launch five fully electric models between 2019 and 2021 and a range of hybrid models.
But it will still be manufacturing earlier models that have pure combustion engines.
Geely, Volvo’s Chinese owner, has been quietly pushing ahead with electric car development for more than a decade.
It now aims to sell one million electric cars by 2025.
“This announcement marks the end of the solely combustion engine-powered car,” said Hakan Samuelsson, chief executive of Volvo’s carmaking division.
“People increasingly demand electrified cars, and we want to respond to our customers’ current and future needs,” he said.
Tim Urquhart, principal analyst at IHS Automotive, said the move was a “clever sort of PR coup – it is a headline grabber”.
“It is not something that moves the goalposts hugely,” he said.
“Cars launched before that date [of 2019] will still have traditional combustion engines.
“The announcement is significant, and quite impressive, but only in a small way. The hybrids they are promising to make might be mild hybrids, anything as basic as a stop-start system.”
A stop-start system is one where electricity from batteries restart a car’s petrol engine, after it has shut down when the car has come to rest at a junction, or in stationary traffic.
“However, Volvo are probably looking at something more sophisticated than that, but we don’t know what as yet.”
It comes after US-based electric car firm Tesla announced on Sunday 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 20,000 Model 3 cars a month by December.
His company’s rise has upset the traditional power balance of the US 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.