Previously announced as being priced at £38,699, the model will now cost £28,990 for orders placed for delivery from 1 January 2011. This coincides with the Government's recently confirmed consumer incentive of £5,000 – which means customers purchasing the vehicle outright will only have to pay £23,990.

The carmaker said that the price realignment 'signals Mitsubishi Motors' global intentions to remain first in the promotion and establishment of the early electric vehicle market'.

Lance Bradley, Mitsubishi Motors' UK managing director, added: 'The i-MiEV will remain first in all respects. We have been first in almost every aspect of the UK's EV market for the last 2 to 3 years and we're not going to give up that position easily. The electric vehicle is now a reality, with all our cars being European Whole Type Vehicle Approved. With a Mitsubishi Motors electric vehicle, customers need not compromise in any area.

'What is more, our car is perfect for urban driving. It has been designed deliberately as a small, compact, true city car with the ability to nip in and out of traffic and park in the tightest of spaces.'

1i-MiEV pricing was previously announced on 23rd March 2010 at £38,699 before the £5,000 government consumer incentive.