Volkswagen has revealed that it is not just joining the eco-revolution; it's going one step further by designing the emission-free public transport of the future.

The carmaker made the announcement during the unveiling of its Milano Taxi at the Hannover Trade Show.

VW's taxi study is an electrically powered prototype that demonstrates its potential as a zero-emission public transport vehicle.

The vehicle features a compact MPV body and showcases a design that previews the production version of the brand's upcoming Up! mini-car range, which has been showcased at previous motor shows.

Energy from a lithium-ion battery supplies the Milano Taxi's electric motor, which is integrated in the concept car's under-body with an output of 85kW. A top speed of 75mph and a range of 186 miles (300 kilometres) are quoted, thanks to the battery storage capacity of 45 kilowatt-hours and the relatively low vehicle weight.

The two-tone car, which bears more than a little resemblance to the VW Samba bus of the 1950s, is tailored to the needs of taxi drivers and passengers; innovative features include a sliding door that opens in a forward direction and customisable taxi touch-screens.

While the Milano Taxi is still purely a concept at this stage, its suitability and practicality could make it a popular eco-friendly runabout in major cities throughout the globe.

Entry to the electric car market would be seen as another box ticked for the brand, which is intent on becoming the world's leading carmaker by 2018.

Volkswagen's first electrically powered model will hit the market two years after the Nissan Leaf goes on sale in 2011.

The Renault Kangoo Z.E, a light commercial vehicle, will follow the Leaf while the Renault Fluence will go on general sale in 2012, (although 100 pre-production models will be available from next year).

Aoibhinn Twomey - 19 Apr 2010