Available only on a four-year leasing contract so that the cost of the battery is paid for by Peugeot, the ultra-low driving costs are proving a hit with UK manufacturers.
The company is expecting to produce 50,000 electric cars by 2015, and the Peugeot iOn has started well since order books opened in November.
Transport for London (TRL) is currently testing the vehicles to use on line maintenance and upgrade work, while other companies such as UK Grid and Apollo property services have also adopted the compact city car.
Seating four, the four-door Peugeot iOn runs entirely on electric power and can be fully charged in six hours or in just 30 minutes using a fast charger.
With a range of 90 miles, the iOn is ideal for city driving, and fits in with Mayor of London, Boris Johnson’s greener London strategy.
Phil Constable, Head of Specialist Services explained: "I think the Tube Lines fleet can adapt to using electric vehicles; our engineers do 50-70 miles a week and, given the Peugeot iOn has a range of 93 miles, electric works for us."
The iOn has proved such a hit because not only is it exempt from paying road tax, it also qualifies for an exemption from the London Congestion Charge and can park for free in many areas of the city.
Terry Melton, Fleet Manager of Apollo, said: "Some of our staff are currently using public transport which makes them much less mobile when on site, and that’s where we could really benefit from the Peugeot iOn."
Peugeot covers the vehicle, battery and electric drivetrain for the duration of the four-year lease, which costs £415 per month excluding VAT.
Peugeot estimates running costs are as low as £2.50 for every 120 miles travelled and the car even comes with a four-star safety rating from the respected EuroNCAP tests.
The Peugeot iOn is available to order now from Peugeot dealers.