Land Rover is attempting to lure company car drivers by announcing details of a front-wheel-drive model with CO2 emissions of less than 130g/km.
The company, which has built its reputation on go-anywhere 4x4s, will launch its first front-wheel-drive model next year. The new model, badged as a Range Rover, is a three-door using the 2.2-litre turbodiesel engine from the Land Rover Freelander.
With CO2 emissions of less than 130g/km, the new small Range Rover model will fall into a much lower company car tax band than any previous model from the company.
When it goes on sale in 2011 it will be taxed on 19% of its list price, rather than the 28% of the current lowest emission Land Rover - the 179g/km Freelander diesel.
The company is also trialling hybrid technology in a Range Rover Sport model. The electric motor is allied to the 3.0-litre V6 diesel engine, and the aim is for the Range_e model to cover 20 miles using electric power only.
A production version is scheduled to go on sale in 2013.