Ford will offer two company car tax-beating zero emission electric vehicles in the UK and a further three hybrid models by 2013.
The plan will begin when the Transit Connect Electric small van is launched next year, followed in 2012 by an electric version of the new Focus hatchback.
Both models will offer several benefits to company car drivers: they will be exempt from the London congestion charge, will cost nothing in terms of annual road tax and, most significantly, will not incur any benefit-in-kind tax charge until April 2015.
The Government has also confirmed grants of up to £5,000 towards the purchase price of electric vehicles, which cost more because of the extra technology which has to be incorporated.
In 2013 two petrol/electric hybrid vehicles will be launched, as well as a plug-in version which can be recharged via a domestic power socket. Ford has not revealed which models will run the new hybrid technology.