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Land Rover has announced it will introduce its first two-wheel drive model next year. The company's new compact Range Rover - which debuted as the LRX concept - will be first to feature two-wheel drive when it goes on sale in 2011. Keeping all fans happy, the new model will also be available in four-wheel drive form.

Land Rover is claiming this 2WD vehicle will emit less than 130g/km of CO2 - making it the lightest, most fuel efficient Range Rover ever built.

Jaguar-Land Rover has committed £800million in the development of environmental technologies and sustainability features, as part of its plan to transform its poor green credentials with a new focus on reducing the weight of its vehicles, reducing parasitic losses and increasing engine efficiency.

Significant developments for the Land Rover's larger vehicles are also planned, with the first diesel hybrid set to be unveiled in 2012 and on the road in 2013.

The first diesel hybrid prototype - christened the 'Range_e' - is being developed using the Range Rover Sport's platform and will go into testing later this year. These tests will use the existing 3-litre TDV6 diesel engine, mated to a ZF 8-speed automatic transmission.

The goal is to return less than 100g/km of CO2, a top speed of 120mph and achieve a 20-mile range using electric power only.

Land Rover managing director Phil Popham said: "This is good news for the company and for our customers. A 2WD option is just one way in which we are developing our vehicles efficiency whilst adding to the Land Rover range and expanding our customer base."

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