A £5,000 incentive on next-generation transport promises to be good news for Nissan and Mitsubishi.

Motorists and companies who decided to buy electric cars are to qualify for the discount under the terms of a new subsidy.

Due to operate from next year, the £230 million Government incentive will get under way just weeks before the launch of the Japanese firm's Leaf hatchback - the world's first mass-produced battery powered family car.

The showroom deal is also timed to coincide with the launch of the Mitsubishi i-MiEV city car.

To qualify for the payments, vehicles will have to be capable of covering 70 miles on a full charge, reach more than 60mph and come with a three-year guarantee.

The Leaf has a range of 100 miles and a top speed of 90mph. The four-seater Mitsubishi also covers up to 100 miles and reaches 81mph and both cars will be backed by three-year warranties.

‘This incentive will bring electric vehicle ownership within reach of UK motorists and companies and make cars like the Leaf financially-viable alternatives to conventional petrol and diesel-powered cars,' said Nissan Motor GB managing director Paul Willcox.

Said Mitsubishi Motors UK managing director Lance Bradley:'We are thrilled with this news.'

Designed for mass appeal, the Leaf has its lithium-ion batteries mounted under the floor to provide ample space for five adults and their luggage.

It charges up in eight hours from a domestic power point as well as in 25 minutes using quick charging technology.An on-board timer helps users take advantage of lower night-time electricity rates.

The  i-MiEV can be trickle-charged from flat to full in six hours at a cost of just 96p - the equivalent of £115 over 12,000 miles of driving.