Bayerische Motoren Werke AG, the world’s largest maker of luxury autos will build its first hybrid supercar as part of a broader effort to create more fuel efficient vehicles and underline its technological prowess.

The Vision Efficient Dynamics model, which accelerates to 100 kilometers per hour (62 miles) in 4.8 seconds while emitting 99 grams of carbon dioxide per kilometer, will go on sale in 2013, the Munich-based carmaker said today at an event in Leipzig, Germany. The car will be priced below the company’s Rolls-Royce models.

Mr Norbert Reithofer CEO is developing the hybrid supercar and the electric powered Megacity auto to help meet tighter environmental regulations and to boost sales to 2 million vehicles by 2020 from 1.4 million this year. The new sports car, which has doors that open upwards, is powered by a three-cylinder diesel engine and two electric motors.

Mr Juergen Pieper an analyst at Bankhaus Metzler in Frankfurt who recommends buying the shares said that “It’s important for BMW to communicate even small progress to cement its perceived role as a leader in hybrid and environmental technology. It would help if they’re the first to sell such cars. But it’s going to take a while to make them count in terms of earnings.”

The carmaker targets significant sales volumes for the Vision Efficient Dynamics and will make it available on all major markets as BMW aims to steal customers from competitors’ models.

(Sourced from Bloomberg)