The car manufacturer's Polestar car is being touted as a rival to Tesla’s Model 3

Out next year. (Photo: Polestar)

Volvo has announced it will launch a premium vegan car dubbed the Polestar 2, set to be released in 2020.

The Polestar 2 is the company's first fully electric car that has an all-vegan interior and a panoramic glass roof - it also has the ability to accelerate from zero to 100 kph in under five seconds.

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The car will be shown at next month’s Geneva auto show, but will not become available to buy until next year, with an estimated price of $55,500.

Addressing the 'world's air quality challenges'

Thomas Ingenlath, chief executive officer of Polestar, said: "Polestar 2 is our first fully electric car and first volume model. Everything about it has been designed and engineered with passion and dedication.

"As an electric performance brand, and through the forthcoming launch of a portfolio of fully electric cars, Polestar is determined to address the world’s air quality challenges. Polestar delivers electric performance cars that are great to own and drive."

'Forward-thinking'

Maximilian Missoni, head of design at Polestar, said: "We decided to bring something different to the segment. Our avant-garde design has evolved from Polestar 1 into an edgier, bolder statement.

"We have also designed a standard vegan interior with progressive textiles that will appeal to the forward-thinking audience who will subscribe to Polestar 2."