Nissan says it will reduce its fuel consumption by 10 per cent on its first mass-market electric car by 2021, which it hopes will boost sales and improve profits.

    It says the new Leaf will cost between £27,000 and £30,000 when it goes on sale in 2021, compared with £40,000 to £45,000 for the Nissan Leaf S. Nissan’s chief executive Carlos Ghosn says the car will be priced at £29,500 when it becomes available next year.

    But the company says that will be a little cheaper than the £34,000 Nissan Leaf currently costs.

    Nissan said it is now working on “sustainable” vehicles that will save as much as 20 per cent of its fuel costs.

    That includes its new Leaf, which has a higher-capacity battery than its predecessor.

    Mr Ghosnar says the Nissan electric car will make a profit of about £4.2bn, or about £2.3 per vehicle.

    “We are making a decision that we will not make another mass-production electric vehicle,” Mr Ghostn said.

    “This is the first mass production electric vehicle.”

    Nissan is targeting more than 100,000 electric cars by 2025.

    That is around a third of the global total.

    Mr Fassbender said the new electric car would “reduce our reliance on oil by a factor of three” compared with conventional cars.

    But he also said the company would be investing £2bn to improve its fuel economy.

    Nissan has been developing electric vehicles for many years.

    Last year it launched the Leaf, the world’s first electric car, which sells for about £28,500.

    Mr Fang said that the new car would be cheaper to make than the Leaf because it has a lower-capacity lithium ion battery.

    He said Nissan was planning to introduce a new battery technology, which will give the car a range of up to 250 miles on a single charge.

    “When you buy an electric car you buy it with an understanding that it will be better for you in the long term than petrol,” he said.

    But Mr Fang also said Nissan would not be making any changes to the price of its electric cars in the near future.

    “It’s a product that’s really about what we can do with it.

    It’s not about the price,” he added.

    Nissan says its new car will have a range equivalent to that of a diesel-powered Audi Q5.

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