Fiat launches one of the cheapest electric cars on the market as major brands scramble to lower prices

It will be available with either electric or mild-hybrid powertrain and will feature a 44kWh battery.

The electric motor in the new model will also produce 111bhp, with drivers set to benefit from an electric battery range of almost 200 miles.

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The interior boasts a wood-effect trim with a two-spoke black and blue leather steering wheel plus rectangular air vents.

Drivers will also have a 10-inch digital display and 10.25-inch infotainment screen to show maps, car diagnostics data and other helpful tools.

Last month Olivier Francois, Fiat CEO and Stellantis global chief marketing officer, said the compact car is based on a global platform that will give the brand "the opportunity to expand its global reach”.

He added: “With the Grande Panda, Fiat now begins its transition to global common platforms that cover all regions of the world, passing on the resulting benefits to its customers worldwide.

“In fact, the Grande Panda is perfectly suited for families and urban mobility in every country – a real Fiat!’

The attractive price point comes as more car makers look to slash the costs of new electric vehicles to appeal to a wider section of the driving public.

Most recently, Lexus introduced a new pricing structure for its battery electric and plug-in hybrid vehicles.

The carmaker slashed the price of its UX300e electric car by as much as £7,000 in a bid to make it more affordable for customers.

Chris Hayes, director of Lexus in the UK, explained that people have become “all too used to rising prices” with the firm keen to reverse the trend.

He detailed: “The enhanced pricing comes with no compromise: customers can be assured of the same high levels of quality, reliability and customer service that have long distinguished our brand in the premium car market.”

On top of the price cuts, the car brand has also introduced a Bespoke Lexus Insurance product model to help motorists save further.

The first mileage-based insurance policy will be available for the RZ 450e and offers drivers the potential for an end-of-year refund if it's not used.

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The Fiat car also includes a full LED Infinity Design headlamps and a glass roof and is loaded with a premium JBL audio system, seven inch TFT Display, 10.25 inch touch screen and wireless CarPlay or Android Auto.