Prototypes have already been tested and the new invention is almost ready to go into mass-production. It could also mean that the new-generation cars would become more reliable and more durable because the new component has fewer moving parts.
The new device incorporates an axial flux, permanent magnet generator. It can power all the cars electrical systems but it is a fraction of the size of conventional generators.
The new generator is part of the UK’s Foresight Vehicle research programme.
The engineers worked for two years on a project called EGSHEV - Engine/Generator Sets for Hybrid Electric Vehicles – and both Ford and Nissan engines were used during the research.
Dr Nazar Al-Khayat, chief engineer at Newage, says: "Automotive applications require hardware that copes with harsh environmental conditions – dirt, significant temperature spans, the need for high reliability and, of course, durability.
"We are confident of the generator concept and of our designs. We can now say to vehicle manufacturers wanting to build hybrids.
"We have the electrical machine designs you need and the ability to produce them in volume."
More than 400 UK companies and universities have been participating in the industry-backed Foresight Vehicle initiative which is led by the Society of Motor Manufacturers and Traders (SMMT).