From horsepower to battery power, Ferrari is joining the growing ranks of green carmakers by launching its first ever hybrid vehicle at the end of the year.

The Italian firm, one of the most elite names in motoring, indicated that one of its glitziest products, the Enzo, will be released in a hybrid version.

“At the end of the year, we’ll also be unveiling the new Enzo, a limited series model and our first ever hybrid car,” said Ferrari’s chairman, Luca di Montezemolo.

According to reports on Monday, the price will probably exceed the €660,000 (£527,000) cost of the Enzo and will be the carmaker’s most powerful model – combining two electric motors with a 12-cylinder gas engine, allowing for a 40% cut in fuel use.

Average new car emissions in Europe are 138g of carbon dioxide per km, but the European Union has set a target of 95g per km by 2020. There are, however, exceptions for niche manufacturers such as Ferrari. Even if the new Enzo halves its CO2 emissions, it will be at the upper end of the greenhouse gas emitters on the roads. Its emissions are currently 545g/km.

In general, cars are getting greener. A recent report by the Society of Motor Manufacturers and Traders said a new car now emits 28% less carbon dioxide than a new car purchased 15 years ago. Nonetheless, car emissions need to be cut substantially for decades to come. The Committee on Climate Change (CCC), the government’s advisory body on tackling greenhouse gas emissions, believes that UK surface transport emissions – of which cars account for 60% of the total – must reduce by 91% from 2008 levels to meet wider emission reduction targets by 2050.

Along the way to meeting those benchmarks, the CCC expects the UK market for electric vehicles and plug-in hybrids to grow from just over 1% of sales currently to 16% by 2020.