With the motor industry on the ropes, you might think that now isn’t a great time to launch a new car to consumers. Especially one that’s expensive and has a limited range.

Mitsubishi, on the other hand, believes the time is ripe for something different. The Japanese maker is about to become the first mainstream manufacturer to offer an electric car that you could have on your driveway tomorrow. Somewhat ambitiously, its new electric i MiEV car flies in the face of all that the marque represents in the UK. Here, its big Shogun SUV enjoys cult status with builders, bouncers and bodybuilders, while the wild Lancer Evolution is as prized by joyriders as it is by rally fans.

Yet Mitsubishi has been secretly working on battery-powered cars since the mid1990s, and the i MiEV (for Mitsubishi innovative Electric Vehicle) is the first fruit of its labour. An initial batch of 200 will be available to lease from UK dealers next summer, at an estimated cost of £750 per month – an amount that could lease you a BMW 530d SE Touring.

Mitsubishi admits early customers are likely to be companies or public bodies with an image to project. “Those who must have the latest thing won’t be put off by the price.” says Lance Bradley, Mitsubishi UK’s sales and marketing director.

The electric i MiEV was developed alongside its petrol sibling i minicar and has an unusual “rear-midship” power-plant, where the electric motor is under the rear seat, the battery pack beneath the floor, in place of the fuel tank. Passenger space is therefore unimpaired.

The i MiEV is built to Japanese K-car regulations, which promote smaller, more efficient cars in return for tax and insurance perks. That limits its width to 4ft 10in and it’s about 10in narrower than a Ford Fiesta. This, coupled with its loftiness, exaggerates its cartoon-like styling - perfect for those who want to scream their eco-credentials. It is the automotive equivalent of a Che Guevara T-shirt.

But unlike that other poster-boy of eco-warrior drivers, the Reva G-Wiz, the i MiEV is tailored to everyday life. The modest boot may not be pram-friendly, but the cabin has room for four adults, and while the dashboard is grey and plasticky, the curvy design is somehow appealing.

Despite the technology that lurks beneath it, the i MiEV starts conventionally by twisting a key-like knob. A familiar looking gearlever slots into “drive”, then you tease the accelerator and pull away.

The motor provides 63bhp and 133 lb ft of torque, and as the car weighs no more than a normal supermini, it’s more than capable of keeping up with traffic. The instantaneous pull of the motor enhances the appeal, and while it feels less potent as it nears its 87mph top speed, dual carriageways aren’t the no-go zones they are to a G-Wiz driver.

It even handles competently. For such a tall, narrow car, it’s surprisingly free of body roll, and that lengthy wheel-base helps provide a comfortable ride. The skinny tyres soon run out of grip, but it’s fun to charge past traffic in something sounding like a milk float.

As any milkman will tell you, electric vehicles don’t run for ever. The i MiEV uses costly lithium-ion batteries, and Mitsubishi claims a range of up to 100 miles. This may be possible on a sunny day in Tokyo, but on a cold day in the Cotswolds, 40-50 miles seemed to be more realistic, and that’s ample for the average city commuter.

The main challenge, and one that you can level at all electric cars, is battery charging. Here the i MiEV offers two options: you can plug it directly into a standard household socket and wait about six hours for a full recharge, or you can part with an extra £3,000 and buy a Quick Charger, which is roughly the size of a drinks-vending machine. This will charge the battery to 80% of its capacity in a mere 30 minutes.

Someone somewhere must also solve the conundrum of what to do if you don’t have a garage. You can imagine the reaction that high-visibility-vest-wearing health and safety executives would have if urban streets became littered with recharging cables. But if you can find an appropriate socket, an all-electric diet does have its benefits. Mitsubishi calculates that the electricity for the i MiEV will cost around £45 for every 10,000 miles of travel. By contrast, the petrol for a Toyota Prius hybrid costs about £640, and the diesel for a typical Ford Focus is about £750.

As a zero-emissions vehicle, the car is also exempt from road tax (VED) and the London congestion charge. This goes some way towards offsetting the hefty leasing cost. After the initial 200 examples have been delivered, production will increase dramatically and Mitsubishi UK could conceivably import 10 times that number in 2010.

“If we could reduce the retail price to £20,000, we could sell a few, and if we reduced it to £15,000, we’d sell a lot,” reckons Bradley. “What we need is an improved infrastructure and tangible government support.” That’s code for asking the government to make electric vehicles such as the i MiEV exempt from Vat.

The Mitsubishi i is not perfect, and it is costly, but this eccentric little car is here now, and could therefore steal a lead in the race to those electric dreams.

ALSO WORTH CONSIDERING...

Toyota Prius £17,870
For: Practical, no range problems, good image
Against: Expensive, to be replaced next year

Ford Fiesta 1.6 TDCi Econetic £11,594
For: Good looks, good to drive, value
Against: It doesn’t shout its green credentials

Vital statistics

ELECTRIC MOTOR Synchronous
POWER 63bhp
TORQUE 134 lb ft
TRANSMISSION Single-speed
RANGE 80-100 miles (claimed)
ACCELERATION 0-60mph: 13sec
TOP SPEED 87mph
LEASE COST £750 a month (estimate)
TAX BAND A (£0 a year)
VERDICT The best electric car so far
RELEASE DATE Summer 2009