The BMW i3 hybrid will cost from around £35,000, when it goes on sale at the end of this year, with customers also being offered a variety of leasing deals to attract them to the brand.
It's set to be sold as a range-extended hybrid vehicle or as a pure electric model, with the former likely to take the bulk of sales initially.
BMW's range-extender model features an electric motor that outputs 168bhp and 184lb ft, with power to charge the battery being generated by a 650cc two-cylinder petrol engine.
All-electric versions of the i3 use the same 168bhp electric motor. Both models are limited to 93mph but are capable of accelerating from 0-62mph in 7.2sec.
"The i3 will cost high-end BMW 3-series money initially," said BMW marketing boss Ian Robertson. "But we are also working on keen lease deals, as we expect that to be popular."
He continued: "Lease deals address many of the concerns about electric cars, and allow us to bundle up packages so customers can have, for instance, the option of BMW X5 loans on weekends, according to their needs."
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