Following fleet trials, the zero-emission Smart Fortwo electric drive is to enter small series production.

Reaction from fleets, including the Metropolitan Police, universities, local councils, architects and energy companies, that trialled the electric car were encouraging enough for Daimler to begin production, with cars coming to the UK in early 2010.

A lithium-ion battery will give the second-generation Smart a longer range, a shorter charging time and improved performance.

Dermot Kelly, managing director Mercedes-Benz UK, said: “We're delighted that the UK trial is proving to be so successful.

"The Smart electric drive is exempt from vehicle excise duty and the London congestion charge and this, underlined with incredibly low operating costs, means that companies taking part in the trial are finding it makes perfect fiscal sense.”