Business secretary Peter Mandelson has visited the premises of Nissan and Smith Electric Vehicles in the north-east of England as part of a tour to promote the development of low-carbon vehicles.
Mandelson took the Smith Ampere, an all-electric version of the Ford Transit Connect van, for a test drive at the company's premises in Washington, Tyne and Wear.
The 50kW electric motor and 28kWh lithium-ion battery pack combine to deliver a top speed of 70mph and a range of 100 miles on a single six-hour charge.
Darren Kell, chief executive of The Tanfield Group (which owns Smith Electric Vehicles), says: "Lord Mandelson is determined that the UK will become the world leader in low-carbon vehicle technologies, so it 
was pleasing to show him that Smith Electric vehicles is already a world leader in electric vans and trucks."
Joe Greenwell, chairman at Ford of Britain, adds: "The Smith Transit line-up shows how effective two market leaders can be in making zero emissions a reality. We look forward to this development gaining momentum."