Company and local authority fleets are set to play a crucial role in PSA Peugeot Citroen's bid to develop a cost-effective electric vehicle programme.

The manufacturer said it would put more effort into attracting fleet sales rather than private sales because studies show 'new engine and battery technologies do not yet satisfy the expectations of private buyers'.

But it added that car makers must work hard to improve electric vehicle technology, reducing their weight and lowering their costs before fleets fully embrace them.

Although a popular choice with some European local authorities and city centre businesses, the manufacturer recognises there is still some way to go before electric vehicles satisfy the requirements of companies and individuals.

'Electric vehicles offer a solution to local pollution problems, while helping to improve urban mobility,' said a PSA spokesman.

'This explains why they have become popular in France and other countries with companies and municipalities running fleets of small commercial vehicles for work in the city.'

France's national electric utility, EDF, and the Post Office run more than 1,700 electric vehicles.

'Many public fleets in French cities are following the trend, including Paris, Lyons, La Rochelle, Dijon, Besacon, Clermont-Ferrand and Tours, as are local municipalities, which already have more than 200 vehicles,' said the spokesman. (December 2001)