Mitsubishi is aiming to slash the price of its iMiEV electric vehicle within two years of its debut in the US and Europe, according to reports in Japanese media.

By 2012, Mitsubishi believes that it can reduce the price of an iMiEV to around 2 million yen (€17,900) taking into account government incentives, Japanese newspaper Nikkei reported last week.

New economies of scale in battery technology and efficiencies in assembly costs should bring the price down sharply, according to the report, citing unnamed sources at the Japanese firm.

In Japan, the only market where it is on sale, the Mitsubishi i-MiEV retails at 3.98 million yen (€31,250) without incentives compared to 3.76 million yen (€29,500) for its closest rival, the Nissan LEAF.

Pricing details for other markets released by both manufacturers suggest that the LEAF will be considerably cheaper around the world.

In Britain, the Mitsubishi i-MiEV will currently retail at £38,699 (€43,594) without incentives, compared to £28,350 (€33,353) for the Nissan LEAF.

In the US, iMiEV pricing is unconfirmed, but the LEAF will retail at $32,780 (€24,293).

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