Last year, Land Rover attended the Detroit Auto Show and unveiled the LRX Concept which is a lightweight 2-door compact SUV with a 2.0 litre turbodiesel hybrid powertrain that has the potential to produce only 120 grams of emissions per kilometer, while delivering 100 kilometers of driving range with just 4.7 litres of fuel. On that note, the U.K Government has decided to extend a grant offer of up to GBP 27 million to the auto maker to produce an all new new vehicle based on the LRX Concept.

Land Rover later revealed that it is considering to take on the project, and that it would require about GBP 400 million in total cost. If the LRX Concept goes into production, it would be the smallest, lightest and most efficient vehicle to be produced by the TATA-owned auto maker. The LRX Concept was named “Concept Truck of the Year” at the auto show, meaning it got good reviews from the people.

The LRX Concept also features an Electric Rear Axle Drive (ERAD) that allows the it to run on electric drive alone at lower speeds of up to 32 km/h, with the turbodiesel engine able to start automatically and smoothly on demand while on the move. The powerplant can also be fueled with biodiesel. Click here to view more images of the LRX Concept.