Peugeot and Citroen have reduced prices and adjusted rental terms on its Ion and C-Zero electric vehicles.

Prices for the Ion and C-Zero have been reduced to from £33,155 to £26,216. The Government’s £5,000 Plug-in Car Grant takes prices for both models down to £21,216.

Monthly rental is also now being offered from £249 a month over a three-year term.

Citroen will be expanding its EV sales specialist network from 11 to 21 dealers and there will be 100 dealers that will now offer EV aftersales. Further expansion is set to continue as part of a staged roll-out as market acceptance of electric vehicles increases and sales volumes grow.

Peugeot will have 23 EV specialist sales centres across the UK.

Citroën and Peugeot’s EV range will grow at the beginning of 2013 with the introduction of a new electric Berlingo van and Partner van. Both will qualify for the recently announced extension to the Government’s EV grant, with a maximum of £8,000 support towards the purchase price of electric commercial vehicles.

Linda Jackson, Citroën UK’s managing director, said: "2011 marked the introduction of EV’s in the UK.

"This year will see the market continue to grow as the technology becomes more accepted by consumers, more manufacturers enter the market and the charging infrastructure continues to develop. Citroën has been at the forefront with C-Zero and this latest announcement confirms the next stage in our development plans."

Phil Robson, Peugeot UK’s fleet and used car director, said: "We want to continue to develop our EV strategy as the technology becomes more accepted by consumers and the charging infrastructure continues to develop."