Britain is set to be at the epicentre of hybrid car production, it has been reported.

Toyota and Honda have already announced their UK-based production plants will be manufacturing hybrids for Europe.

Honda has been producing hybrid cars since last year, with its environmentally-friendly Insight going on the market then.

Nissan is expected to look to the UK for its hybrid production too, with UK managing director Trevor Mann telling the Daily Telegraph that the company has "an understanding of where we want to go" with electric vehicle production.

He also told the newspaper that he was "hopeful" that production of Nissan’s all-electric car, the Leaf, would take place at the UK’s largest car plant in Sunderland.

The UK government is keen for motorists to start purchasing ultra-low carbon cars in the near future.

A new incentive for buyers, the Plugged-in Car Grant, will be available from next January.

They can receive £5,000, the equivalent of around 25 per cent of the car value, off ultra-low carbon models.

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