Japanese manufacturer Nissan is planning to sell battery-powered electric cars within 3 years in a bid to catch up with its rivals in the market.

The AFP news agency carried a story from the Nihon Keizai Shimbun newspaper, stating that the light, sub-compact electric model would be powered by Nissan-developed lithium-ion batteries. Most electric cars cannot travel far between charges, with most only able to make 40 miles or so, but Nissan is aiming for a range of 125 miles.

Mitsubishi Motors and Fuji Heavy Industries are leading the development of battery-powered vehicles. Nissan is also planning to accelerate the expansion of its diesel car range and the development of bio-ethanol cars in co-operation with top shareholder Renault, the newspaper added.

Nissan, which has inthe past unveiled electric concept cars such as the Pivo (pictured), produces more cars in the UK than any other manufacturer, and its plant in Sunderland is rated as the most productive car facility in Europe. Nissan is also responsible for one in five cars exported from the UK.