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Mitsubishi's electric car, the I-Miev, will cost £33,699 when it goes on sale in January 2011.
The price, which includes a deduction of £5000 from a government grant, is the first to be announced from a new generation of electric vehicles including Peugeot's Ion and Citroen's C-Zero, both of which are essentially the same car as the I-Miev.
The government recently announced its Consumer Incentive Scheme which offers £5000 off the price of qualifying electric and plug-in hybrid electric vehicles.
Lance Bradley, Mitsubishi UK 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's newly-opened Electric Vehicle Centre in London is already taking orders for delivery in January and the carmaker said enquiry levels have soared following the government's consumer incentive announcement on 25 February.
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