Peugeot’s new Ion electric car, based on the Mitsubishi i-Miev, will be available on a four year 40,000 mile lease contract, when it goes on sale in the UK towards the end of this year.

Peugeot will be charging a monthly payment of £415 excluding VAT, which includes:

• The lease of the vehicle (battery pack considered part of the vehicle)
• Full warranty cover for the vehicle, battery and electric power train for the period of the lease
• Full servicing and full maintenance for four years and 40,000 miles
• Peugeot Connect services (available April 2011)

Peugeot will make the same benefits available to the second user on a second four year contract at a reduced monthly amount.

The Ion has a potential maximum range of 93 miles and it takes six hours to fully recharge the battery using a traditional household socket. A quick charge using a special charging unit provides a 50% charge in fifteen minutes, or 80 % in thirty minutes.

Peugeot believes running the Ion would be a potential annual saving of £5,150 by operating an electric vehicle over a conventional internal combustion powered car.

The four star Euro NCAP Ion comes with six air bags, ESP, electronic brake force distribution (EBFD) and emergency brake assist (EBA).

The market

Peugeot believes the success of the European electric vehicle market will be very dependent on tax incentives at the time of purchase or during ownership, the introduction of infrastructures, possible ecological constraints in terms of urban traffic and the fluctuating price of fossil fuels.

The electric vehicle segment is expected to grow gradually, representing 4% to 5% of the total European market by the year 2020. For this reason Ion production will build gradually, rising to a projected total of 50,000 by the year 2015.

The iOn is targeted mainly at local Government, local authorities and public services and companies active in the transport and energy sectors, leasing companies, car sharing companies and the fleets of large corporations.

Private customers are being targeted to a lesser extent.