The scheme aims to help public sector organisations such as central and local government bodies to adopt greener vehicles. It has now been rolled out to cover housing associations, universities and further education establishments.

Based on the rear-wheel drive Ford Transit, the diesel/electric Ashwoods van is the only Department for Transport (DfT)-approved vehicle in the programme.

A spokesman for Ashwoods said no pure electric vans are included because they qualify for the Government’s £8000 Plug-in Van grant.

Under the LCVPP, the DfT provides a subsidy of £3400 on the first 500 Ashwood hybrid vans bought.

The website: www.ashwoodshybrid.co.uk focuses on the benefits of using hybrid vehicles and explains how to apply for the LCVPP subsidy.

Ashwoods claimed its Hybrid uses 25% less fuel than a conventional diesel Transit.

Martin Kadhim, business development director at Ashwoods, said: “The cost difference between a normal Transit and a hybrid Transit can be recouped in as little as a year based on 7000 miles per annum.”