The plans were unveiled at the Geneva Motor Show by Hakan Samuelsson, president and chief executive of the Swedish car maker.
He said: “‘We think a car with both electric and autonomous drive is not that far away.
“Our first electric car will come out in 2019 and we plan to have an autonomous car in 2021.
“Autonomous drive will be the most attractive feature in a car that has been released in many, many years.
“This is because it will suddenly allow you, as a consumer or a driver, to use hours of wasted time in a more productive way.
“Suddenly, you can use your car as an office.
“I think that has a huge value.”
Samuelsson explained that Volvos of the future would be able to drive themselves without any driver input but added that premium car customers still wanted the ability to drive the car themselves.
He explained: “You can drive it if you turn off the autopilot.
“I think that is what people want to have from the premium car.
“People want to drive it.”