The PSA Group, owners of the Peugeot and Citroen marques, will sell the Mitsubishi i-MiEV as the Peugeot i0n and Citroen C-Zero once the city cars are launched at the end of the year.
Earlier this year, Peugeot pulled out of a deal to buy shares in Mitsubishi as it was worried about the effect of the deal on the company’s debt rating.
However, an agreement to supply and develop a range of vehicles together has been finalised.
Both Peugeot and Citroen expect to sell 25,000 of the all-electric minicar as the French manufacturers strive to compete with Nissan’s Leaf and the upcoming Vauxhall Ampera.
The zero noise and zero emissions C-Zero and i0n models will be powered by a 64bhp electric motor delivering maximum torque of 180Nm from 0 to 2,000rpm.
Energy is stored in the lightweight 330-volt lithium-ion battery which takes six hours to recharge.
The cars will help the manufacturers bring average emissions from new cars below the 130g/km target set by EU regulations.
The new targets will come into force in 2015, and currently only Toyota and Fiat pass the criteria.