Swedish carmaker Volvo will not develop any new diesel engines as the cost of reducing emissions of nitrogen oxide is becoming too expensive, Chief Executive Hakan Samuelsson was quoted as saying on Wednesday.

"From today's perspective, we will not develop any more new-generation diesel engines," Samuelsson told German's Frankfurter Allgemeine Zeitung in an interview.

Samuelsson said that Volvo would keep developing current diesel-powered models introduced in 2013 to meet future emissions standards, but then the costs of keeping them compliant with higher anti-pollution standards would no longer be worth it.

Instead, Volvo will invest in electric and hybrid cars, with its first pure electric model due on the market in 2019.

"We have to recognize that Tesla has managed to offer such a car for which people are lining up. In this area, there should also be space for us, with high quality and attractive design," Samuelsson said.

Samuelsson has previously said that tighter emissions rules will push up the price of diesel-powered cars to the point where plug-in hybrids will be an attractive alternative.