The move is set to reduce the Outlander PHEV price by the full grant of £5,000, although Mitsubishi is still to announce pricing for the vehicle, which goes on sale this spring.

The carmaker says the OLEV announcement is particularly noteworthy as most other hybrids on the market do not qualify for the PiCG. However, unlike traditional hybrids, the Outlander PHEV can be driven over a sizable distance, at speeds over 70mph, using just its electric motors.

The Outlander PHEV also boasts CO2 emissions of just 44g/km CO2, equating to a Vehicle Excise Duty (VED) of £0 and only 5% BIK for company car drivers.

Mitsubishi Motors UK’s managing director, Lance Bradley said: ‘Having one of the first plug-in hybrid’s in the UK market that boasts 4×4 capability with an EV range of 32.5 miles and emissions as low as 44 g/km puts Mitsubishi at the forefront of a new era in the automotive industry.

‘The vehicle is extra-ordinary and very different to other hybrids in the market and we are delighted that the Mitsubishi Outlander PHEV has met the high level of criteria required to qualify for the Plug in Car Grant.

‘It will appeal to a wide cross-section of private individuals and business users, with its exciting combination of innovation, style and technology and we are thrilled to confirm that pricing will be announced shortly.’