Two days after Jaguar announced its commitment to going all electric by 2024 Ford has said its passenger vehicle line-up in Europe will be all-electric by 2030. By the middle of 2026, all its cars will be available as electric or hybrid models, it added.

European regulators are clamping down on emissions, with countries including UK planning to ban the sale of new petrol and diesel motors.

Ford said it would spend $1bn (£720m) updating its factory in Cologne, with the aim of producing a mass-market electric vehicle by 2023.

“Our announcement today to transform our Cologne facility, the home of our operations in Germany for 90 years, is one of the most significant Ford has made in over a generation,” said Stuart Rowley, president of Ford in Europe.

“It underlines our commitment to Europe and a modern future with electric vehicles at the heart of our strategy for growth.”

Ford is the largest carmaker to make such an announcement in Europe, holding a 15% share of the regional market.

On Monday, Jaguar Land Rover said its cars would be all-electric by 2030, with its Jaguar brand electrified by 2025. GM and Volvo Cars have set similarly ambitious targets.

This year car makers in the EU will face hefty fines if they fail to meet emissions standards. The UK meanwhile has said it plans to ban the sale of new petrol and diesel cars from 2030, with France is targeting the same by 2040.

David Leggett, automotive analyst at GlobalData, said: “Automotive electrification is an expensive proposition for vehicle manufacturers, but they are nevertheless concluding that they must take the investment hit to be well-positioned competitively later this decade when the end for new internal combustion engine vehicle sales will be in sight in a number of markets.”

On Tuesday it emerged that Coventry Airport could be the site for a gigafactory – a plant to manufacture electric car batteries.

The UK government previously announced £500m funding as part of a ten point plan to support the electrification of vehicles, including developing gigafactories across the UK.