Eco City Vehicles has won an exclusive distribution contract to launch a hybrid-powered light truck into the UK's LCV market.
The company has agreed terms with Veicoli Ecologici Metropolitani of Italy for exclusive distribution in the UK and Ireland.
It has converted a 3.5-ton Mitsubishi Canter Fuso truck to run on electric propulsion backed up by an on-board LPG-fuelled generator.
It claims the vehicle is capable of covering almost 120 miles with a one ton payload.
Chief executive Peter DaCosta said: "We believe we have developed a real commercial solution to help the environment and an alternative to pure electric.
"Our vehicle has been designed to eliminate the fear that an electric vehicle will run out of power and not be able to get back to base. It gives a range sufficient to enable companies to do a day's work and return home.
The deal gives Eco City Vehicles the option to build and convert the truck at its Coventry factory, where it current converts Mercedes-Benz taxis.
DaCosta added: "The company wants to take part in the green initiatives that are being offered to the motor industry, which are intended to help our depressed and distressed vehicle market, bringing much needed jobs to the sector.
"We have already received many enquiries over the past months from blue chip, truck and logistic companies who had heard that the vehicle was on its way."