Ferrari, known for its high- performance red sports cars, formally joined the car industry's move toward electrification yesterday when it unveiled its first hybrid car, an experimental or “concept” model painted bright green.

Ferrari said that the technology of its HY-KERS experimental vehicle, developed by its racing division, could reduce its cars' emissions by 35 per cent.

The brand, owned by Fiat, said it planned to begin introducing hybrid versions of all of its road cars within three to four years.

Ferrari said one of the aims of the project would be to ensure that it could comply with tighter CO2 emissions standards in the future.

In Geneva on Monday, Volkswagen outlined plans to become dominant in electric cars by 2018. The same day Daimler announced a partnership with Chinese battery and carmaker BYD to co-operate on a new electric model in China.

Luca di Montezemolo, Ferrari's president and chief executive, said that Ferrari was moving into hybrids because “in terms of technology we always want to anticipate the world”.

He said he hoped that KERS – the kinetic energy recovery system introduced on Formula One cars but then scrapped for the current season – would be revived next year.

“This is the future of Formula One, and we will push in this direction,” Mr Di Montezemolo, said.

Ferrari said that the design of its concept car, with its batteries positioned below the floorpan, would improve rather than hinder its performance by lowering the centre of gravity.