The new iOn, which is based on the Mitsubishi i-MiEV, will be offered on a four-year, 40,000 mile contract with a monthly payment of £415 excluding VAT, which includes:

• The lease of the vehicle and battery pack
• Full warranty cover for the vehicle, battery and electric powertrain for the period of the lease
• Full servicing and full maintenance for four years and 40,000 miles
• Peugeot Connect Services (available April 2011).

Peugeot has also said that the vehicles will be made available to second users on the same four-year contract at a reduced monthly amount.

Although fleets may baulk at the monthly rate of £415 +VAT, Peugeot has highlighted the cost savings that the model delivers, including no petrol or diesel costs – the model can be charged for an average cost of £2.50 per 120 miles, according to the firm – plus no Congestion Charge and no parking charges where applicable.

Peugeot says that the iOn is targeted mainly at local government, local authorities and public services as well as companies active in the transport and energy sectors, and large fleet operators.

The first delivery of the Peugeot iOn will take place in the UK at the end of 2010.