Renault is calling for leasing companies to embrace its electric vehicle plans as the first EVs begin to close in on production.

The firm is sticking to its principle of leasing the battery itself, separate from the vehicle, which can either be bought outright or leased from a leasing company in the traditional way.

The French brand's first EV arrives next autumn in the form of the Kangoo van (driven on page 16), which will be priced at £16,990 excluding VAT, without any help from the £5000 Government subsidy as it doesn't apply to commercial vehicles. The electric vehicle range expands early in 2012, when the lower medium Fluence and quadricycle Twizy arrive, with the supermini Zoe also on sale by the middle of 2012 (see panel, right).

Renault's UK electric vehicle programme boss, Andy Heiron, said the firm isn't looking to lease the vehicles itself, and will either sell them direct to clients, or, if they have existing lease arrangements, will attempt to work with the leasing company. Heiron is, though, concerned by the reaction of some leasing companies to electric vehicles.

"I don't think we'll sell into ones and twos - butcher, baker and candlestick maker - it will be significant tranches of vehicles into big brand names with clear low-carbon agendas," he said. "With contract hire overall there is a lot of scepticism about it - there are some contract hire firms taking the view that unless you can own the battery they're not prepared to countenance EVs, and there are some who are taking more of a position of how can we make this work?"

He said Renault is trying to work through the issues with lease companies, but one or two have followed the lead of residual value expert Cap, which has set its position out as refusing to quote an RV for a vehicle unless the battery is included as part of the one deal. Renault anticipates battery life will be eight-10 years, and then it sees an additional five years of life in a secondary use for electricity storage in industry or domestically. "The danger of the purchasing route for batteries, is the six- or seven-year value will be extremely questionable as there will be a huge cost looming," said a spokesman.

"There will be no buy-back deals or underwriting - the biggest unknown or risk is the battery so we're taking that risk on their behalf," said Heiron. "Part of the remit of leasing companies is to take an element of the risk. They have approached us about it and we said 'no', though it was a natural discussion to have."

If customers purchase outright, it will negate these issues, but Heiron said solutions will have to be sought in the coming months for fleets that lease.

"If they outright purchase then it's simple, but if they contract hire then it brings in another partner," he said. "We need to work with leasing companies to make it happen, and respect the relationships out there and work with those people. Contract hire companies will have to recognise that if there is pressure from their customers for EVs they will have to work it out." The battery lease will be around £70-£80 per month.

Renault's goal is, with subsidiary Nissan, to become "front of mind" for EVs, said a spokesman, drawing parallels with what Toyota has achieved with hybrids. The basis for EV introduction is "mass-market affordability for all" in an attempt to establish them as a credible alternative to traditionally fuelled vehicles, although even with that, the market is only predicted to account for 10% of new car and van sales in the UK by 2020.

Renault's first four EV models

Kangoo Van ZE

On sale: Autumn 2011

Price: £16,990

Range: 100 miles

Maximum power: 44kW

Maximum speed: 81mph