Gordon Murray Design and Zytek Automotive announce an all-electric three-seater city car, made possible through a £4.5m investment from the government-backed Technology Strategy Board.
With a total cost of £9m, the new research and development project will allow the consortium to develop four prototypes by February 2011.
"As we head towards the new industrial revolution brought about by rising energy costs and concern over the effects of greenhouse gases, we at Gordon Murray Design feel proud to be working with the Technology Strategy Board in helping the UK play a leading role in tackling the issues we all face," said Professor Gordon Murray, Chief Executive and Technical Director of Gordon Murray Design.
"More often than not the UK has been responsible for innovative concepts and technologies only to have the end benefits seen abroad.
In this case, we're all working together to keep the technology and the production in this country."
The T.27 will be the world's most efficient electric car due to its low weight and "clean sheet of paper design."
This ambitious target cannot be achieved by applying a conventional stamped steel construction design, nor with a drivetrain using existing gearboxes, motors or batteries.
Instead, an entirely fresh approach is proposed; accepting no compromise in safety, performance, range, space, weight, rolling resistance and ride quality.