Nissan’s electric Leaf will be priced at £23,350 including the battery after the £5,000 Government subsidy when it goes on sale in the UK in February 2011.

The announcement puts the Leaf on the same sort pricing level of a well specced 2.0-litre diesel Ford Focus or Volkswagen Golf.

Nissan has now set the bar for the pricing of a volume electric vehicle which rival manufacturers will look at with great interest as they price their equivalent rivals.

The Nissan Leaf is a compact, zero-tail pipe emission five-passenger family car that comes with air conditioning, satellite navigation, a parking camera, a quick charge socket and smart-phone connectivity as standard.

UK customers can order a Leaf from July this year and customers will benefit from zero vehicle excise duty and zero company car tax for five years.

Nissan believes the average saving in fuel costs will be £513 a year for Leaf customers.