The car, costing £14,000, will have a range of up to 65 miles and top speed of 55mph and goes on sale this autumn.
It is exempt from road tax and congestion charges and is said to run on only a few pence per mile.
Julian Wilford, NICE Car Company co-founder, said: "We all know customers want practical electric cars and they want them sooner rather than later.
"The Ze-O is a genuinely spacious and affordable car; it’s coming to the UK this autumn and to the rest of Europe during 2009."
Optional, longer range lithium-ion batteries for the Ze-O will be introduced soon.