Launched to coincide with the UK government's recently announced Consumer Incentive Scheme, the price has been set at £38,699 including VAT. The government grant will be worth £5,000 off the purchase price of qualifying electric and plug-in hybrid electric vehicles, making the transaction price £33,699 including VAT.

Lance Bradley, Mitsubishi Motors UK's managing director, said: 'These are exciting times for the motor industry in the UK. This is the biggest change in the automotive industry since it began some one hundred years ago, so to be able to offer our zero emissions car for this price is a truly great achievement.

'We are aware that, by their very nature, any new technologies always command a premium, which has been true for anything from plasma televisions to cars. Others make price claims and estimations, but we have a real vehicle that is available now and is proven in the real world.'

Mitsubishi claims the following for its i-MiEV:

•  Only £115 fuel costs for 12,000 miles driving (£0.96 pence for a full charge)
•  Exempt from road tax (saving approx £300 per annum)
•  First year capital allowances for fleet vehicles
•  Zero benefit-in-kind company car tax
•  Lower rate of VAT for domestic electricity
•  Exempt from congestion charge (saving up to £2,000 per annum)
•  Free parking in many London boroughs and cities such as Milton Keynes
•  Expected high residual values due to high demand outstripping supply for several years to come.

The Mitsubishi Electric Vehicle Centre has been operational for customer enquiries and demonstrations since mid-February and customers can contact the Centre on 0207 546 8331 or via email at [email protected].