Opel is considering launching an electric car for inner-city use in what it sees as a high-potential market, Opel/Vauxhall CEO Nick Reilly told Bild am Sonntag. “We are thinking about a small electric vehicle,” he said.

“We believe there is strong potential for growth in cities across the world,” he added, predicting that “various governments are going to provide fiscal support for this kind of vehicle.”

An Opel spokesman told Reuters the new model – smaller than the Corsa – was expected to be launched in three years, in both electric and conventional fuel versions.

Opel has said it plans to invest EUR11bn in new models and environmentally friendly technology such as electric powertrains by 2014.

Its first electric-only car, the Ampera, a variant of the Chevrolet Volt, is scheduled for delivery in 2011.