Volvo is set to launch a new eco brand which will offer sub-120g/km of CO2 versions of the C30, S40 and V50 models.

The DRIVe models are powered by a 1.6-litre turbodiesel engine which offers up to 64.2mpg average fuel economy and CO2 emissions down to 115g/km.

The figures have been achieved through a series of modifications to the standard cars.

All DRIVe models feature aerodynamic tweaks and a lower ride height to cut drag, low rolling resistance tyres, higher gear ratios for lower rev cruising and the use of special low friction oils and a gearchange indicator.

The models will go on sale in the UK in January, and all will fall into the lowest 13% benefit-in-kind tax band for diesel cars.