The Ferrari Hy-Kers prototype, with its bright green paint, signals a bold change of direction for the high-performance sportscar manufacturer.
The technology, based on the same regenerative brake system used in its Formula One cars, is set to reduce emissions by 35%.
Ferrari plans to have hybrid options available on all models within three to four years.
High-end carmakers like Ferrari are scrambling under pressure of carbon emissions causing taxation and inner city driving restrictions in certain countries.
With the economic crisis these flashy high-end cars are needing to reign themselves in and try to be more in tune to the trend of environmental responsibility.
Porsche showcased a 911 GT3 with a hybrid petrol-electric engine the day after their partner VW boasted they would lead the auto market in electric cars by 2018.
Right after Ferrari unveiled their hybrid concept car today at the Geneva Motor Show, Porsche unveiled
their new concept car, Porsche 918 Spyder, featuring a "V8 engine which delivers 500bhp and combines a high-performance mid-engined concept with ultra-efficient, low-emission drive technology."
With the new engine and drive technology this concept car can reach a top speed of more than 198mph, and can accelerate from 0-62mps in 3.2 seconds. The car features electric motors on the front and rear axles, making it better for inner city driving than any other Porsche.
Carlos de Silva
, an analyst at IHS Global Insight, said the Geneva show would be "marked by the colour green and the ecologically responsible".
"Even on the stands of Porsche or Ferrari, they must demonstrate that they are coherent with the times," he added.
See the new Ferrari Hy-Kers concept car here