LONDON'S first hybrid taxi has been unveiled, with the promise that taxi drivers switching to the greener vehicle can expect to slash 35% off their fuel bills.

The taxi uses hybrid electric vehicle (HEV) technology provided by Azure Dynamics and the group claims performance is not affected. A spokesman said: 'The taxis will deliver enormous environmental, health and economic benefits. Azure's previous hybrid vehicles have resulted in an 83% reduction in hydrocarbons, 91% in carbon monoxide and 53% lower nitrogen oxide emissions.'

Representatives from London Taxis International and the Energy Saving Trust were shown a demonstration of the vehicle at its launch.

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