Mitsubishi Motors will double the production capacity of its i MiEV and other electric cars to a maximum 20,000 units a year in fiscal 2011 amid growing demand for eco-friendly cars, company officials said on Friday.

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The Tokyo-based automaker would also boost the annual output target of electric vehicles to 5,000 units in the business year ending in March 2011, up 1,000 units from its earlier plan, Kyodo News said. The i MiEV, powered by a lithium-ion battery module, will be assembled at its factory in Kurashiki, Okayama Prefecture.


Mitsubishi will begin selling the plug-in electric cars in Japan in July. Orders for the 2,000 units manufactured during the year from this summer, have been filled by electric companies and other corporate clients, the officials said.


Environmentally friendly vehicles represent one of the few markets that are likely to expand thanks to newly established government subsidies and tax breaks that will be applied.


Mitsubishi’s electric cars will also qualify for the government measure since they run without emitting any carbon dioxide.

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In the year beginning in April 2010, Mitsubishi will introduce commercially available and left hand drive models for export and also begin manufacturing electric cars for PSA Peugeot Citroen.


Mitsubishi and the French automaker signed a memorandum of understanding in March to develop an electric car for Europe based on Mitsubishi’s i MiEV electric car, to be manufactured by the Japanese automaker and sold under both of their brands from late 2010 or early 2011.