Swedish carmaker Volvo unveiled its electric EX30 on Wednesday in Milan, Italy, which is the company's smallest SUV and its fourth electric model.

The model marks the carmaker's latest move towards its ambition to go electric. Volvo aims for half of its global sales to consist of fully electric cars by the middle of this decade. By 2030, it plans to sell only fully electric models.

The carmaker said it expects the EX30 to be one of its best-selling models in coming years as it works towards those ambitions, adding that the model will significantly contribute to its growth and profitability objectives.

Volvo said the model will enable it to enter a new and fast-growing segment as there is a growing demand from consumers globally for small, fully electric premium SUVs.

The EX30 has three powertrain options and two different battery types. The single-motor, extended range option has a maximum range of 480 km.

The all-wheel drive variant generates a maximum output of 315 kW and finishes the zero to 100 km/hour sprint in 3.6 seconds.

The model has an attractive starting price of around 36,000 euros (274,620 yuan), which means customers get a premium fully electric SUV for a price similar to combustion engine-powered equivalents.

"The fully electric EX30 might be our smallest ever SUV, but it's a big deal for our customers and a big deal for us as a company," said Jim Rowan, Volvo's chief executive.

"We like to say the EX30 is small yet mighty, because it delivers on everything you'd want from a Volvo but in a smaller package. "

Analysts say the model will help it boost sales in major markets like China, where there are a big number of electric models available from both local and international brands.

Last month, Volvo sales in China reached 14,121 cars, an increase of 49 percent compared to the same month last year.

Sales of Volvo's electric models and plug-in hybrids grew 116 percent in the month, accounting for 8 per cent of the total sales in China.

China's NEV development has been on a fast track, according to the China Association of Automobile Manufacturers.

The output and sales of NEVs were 2.29 million and 2.22 million in the first four months of this year, respectively, both surging 42.8 percent year-on-year.