Nissan's new Leaf electric vehicle doesn't go on sale in Britain until February next year – but the firm has thrown down the green gauntlet to other manufacturers by revealing the car's price, writes Phil Vaughan.

The five-door family-sized hatchback will cost £28,350, but a £5,000 UK Government grant for pure electric cars will see it leave the showroom for £23,350.

And that means other players in this new market sector must aim for a similar price tag to secure sales.

Nissan's news must surely mean that Mitsubishi, due to put its i-MiEV all-electric supermini on sale here at the start of 2011, will be looking to lower the car's cost from a projected £38,699 – or £33,699 with the Government incentive.

The first Nissan Leafs will come from Japan, but the firm's Sunderland plant will be able to manufacture 50,000 a year after they start to roll out of the factory gates there early in 2013. Nissan has invested more than £420 million in the UK production of both the car and its lithium-ion batteries, and has linked with Renault in a bid to lead the field in the output of electric vehicles.

Faye Sunderland, editor of TheGreenCarWebsite.co.uk, says of Nissan's Leaf price news: "Nissan has lived up to its claim to deliver the world's first mass-produced affordable electric car.

"It is great news for UK consumers, and also fantastic news for UK manufacturing that the Leaf will offer a practical, affordable, way to access zero tailpipe emission driving.

"The Nissan is truly a step into a new era, when inner-city traffic pollution becomes consigned to the history books."

Ms Sunderland's online guide itself is evidence in the surge for information on environmentally-friendly transport – since its launch in June 2007, it now attracts more than 150,000 hits each month.

She also points out that, with free parking for electric vehicles and their exemption from city congestion charging, "motorists need not fear that the financial rug will be pulled from under their feet. Even when the incentives are gone, economies of scale will allow the price to reduce further, while advancements in technology will reduce costs too."

UK buyers will pay no road tax on an electric vehicle, and company car users will be exempt from the benefit-in-kind levy for five years, too.

The spacious, five-seater Leaf can be fully charged at home or work in about eight hours using a standard, 220-240 volt electricity set-up.

But by using a quick charger, the Leaf's battery can reach 80 per cent of capacity in fewer than 30 minutes.

And Nissan has calmed fears over the costly battery's life by stating that, even after eight to ten years' use, it will still retain 70 per cent-80 per cent of its original capacity.

The Japanese maker Nissan is currently investigating potential uses for the batteries after their useful life is over, and extensive recycling plans will be put in place to ensure precious materials can be reused.

Overall, more than 95 per cent of the Leaf can be recycled.

Interested private buyers and business fleet operators can register their interest in the Leaf from July, at website www.nissan.co.uk/leaf, and in the same month Nissan will also reveal details of a special finance plan for the car.