Volvo Cars is launching a new M brand that will lead its future mobility services like shared car ownership and on-demand access to vehicles.

M will first launch in Sweden and the US next year, aimed at customers in major cities that need access to a vehicle.

Håkan Samuelsson, Volvo Cars president and chief executive, said: “We recognise that urban consumers are rethinking traditional car ownership. M is part of our answer.

“We are evolving to become a direct-to-consumer services provider under our new mission ‘Freedom to Move’.”

Part of the new M offering will be an app and Volvo is currently developing ‘proprietary learning technology’ that asks users about their specific transport needs.

Bodil Eriksson, chief executive of Volvo Car Mobility, said: “The services currently available mainly offer alternatives to a taxi or public transit.

“We’re focused on the way people use the cars they own, which sets us apart. We aim to provide a real alternative to that experience. It should enable us to live life on our terms, getting things done and maximising precious time. We see the opportunity to offer a premium experience.”

M will draw on the experience Volvo has with Sunfleet, its Swedish car-sharing company that records 500,000 transactions a year and has a fleet of 1,700 vehicles. Sunfleet will be integrated into the new M brand next year, making the service available to all existing Sunfleet members.

Samuelsson said: “Mobility is undergoing a fundamental transformation and Volvo Cars is leading that change.

“The launch of M creates new sources of revenue for Volvo Cars and will be integral to the company’s ambition to build more than five million direct consumer relationships by the middle of the next decade.

“Stockholm, Sweden, will serve as M’s base of development and where we already conduct extensive testing. A broader Beta test will take place this autumn.”