Mitsubishi Motors UK has slashed £10,000 from the original price tag for its i-MiEV electric city car.

It is now being marketed at £28,690, which once the Government's low carbon vehicle £5,000 incentive is deducted means customers will pay £23,690. Mitsubishi i-Miev electric trial

Mitsubishi said 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’s managing director, said: “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.”

More than 2,300 i-MiEVs have been operating on Japanese roads since full production started in July 2009.

Deliveries for UK buyers begin on January 1.

The vehicle has also been on trial in Birmingham and Coventry in the UK, where users average daily mileage has been just 23 miles, well within the car's 90 mile range.

Mitsubishi claims i-MiEV users will incur only £144 fuel costs for 12,000 miles of driving (calculated at £0.96 pence for a full charge – 16kW at an average of 6p per kW).

The Mitsubishi Electric Vehicle Centre in central London, operated by Inchcape, has already taken several orders for delivery in January.

Mitsubishi said this latest pricing announcement is sure to increase enquiries and sales from all areas of the market – retail, small business and large fleets.