June 19 (Bloomberg) -- Mitsubishi Motors Corp., aiming to be the first mass-producer of all-electric cars, plans to introduce plug-in hybrids as early as 2013 to meet tightening vehicle- emission regulations worldwide.

The carmaker will develop hybrids, which use gasoline engines and electric motors, as all-electric systems aren't efficient enough for sport-utility vehicles and other large models, Tohru Hashimoto, its head of electric-car development, said in a June 16 interview. Unlike conventional hybrids, plug- ins can store more energy after being charged at electrical outlets to provide power for gasoline-free driving.

Mitsubishi and other automakers have boosted investments in hybrid and electric technologies because of tougher emissions rules, including European standards that may come into effect from 2012. General Motors Corp. and Toyota Motor Corp., the world's largest automakers, plan to introduce plug-ins by 2010.

``Like all other automakers, Mitsubishi needs to have eco- cars, while clearing stricter rules and making a profit,'' said Koji Endo, a senior analyst at Credit Suisse Group in Tokyo. The company ``doesn't have enough resources to fund a new hybrid model,'' so it's ``natural'' to base the plug-ins on the all- electric models, he added.

Conventional hybrids, such as the Toyota Prius, are mainly powered by the car's gasoline engine, which also charges battery packs. The batteries then power an electric motor to drive the vehicle at lower speeds.

i MiEV

Like plug-ins, Mitsubishi's all-electric i MiEV minicar will also be charged from a standard outlet. The company aims to sell 1,000 i MiEVs in the year starting April 1, 2009, to fleet customers such as utilities. The cars, which don't use gasoline at all, will go on sale to consumers in the following fiscal year. European sales will start later. The company eventually plans to offer the vehicles in Australia, New Zealand, and Singapore.

``We are the top runner in developing electric cars,'' President Osamu Masuko said at a shareholders meeting today. ``We will work harder to launch them by next September ahead of others.''

Nissan Motor Co., Japan's third-largest carmaker, plans to sell all-electric cars in the U.S. and Japan by 2010 and to introduce them globally by 2012. Fuji Heavy Industries Ltd., the maker of Subaru cars, plans to sell 100 electric cars to companies and local governments next year.

Mitsubishi's development of an all-electric vehicle will ease its entrance into the hybrid market, Hashimoto said.

Still, Atsushi Ishii, an analyst at auto-consulting company CSM Worldwide, said that the move will require a lot of investment and development work.

``Combining an electric motor and engine requires high technology,'' he said. ``It's very difficult.''

Regulations

The European Commission in December proposed cutting average carbon-dioxide emissions from cars by a fifth to 130 grams per kilometer in 2012. The plan would be backed by fines reaching 95 euros ($148) for every gram/kilometer above the limits, multiplied by the number of vehicles sold.

Japanese carmakers currently emit as much as 170 grams of carbon dioxide a kilometer on average, according to Credit Suisse's Endo. Toyota emissions were 152 grams and Mitsubishi was 169 grams in 2006, according to European Commission data.

Mitsubishi will equip its all-electric cars with lithium-ion batteries, currently being developed by a venture with battery- maker GS Yuasa Corp. and Mitsubishi Corp. Lithium-ion batteries are lighter and can store more energy than nickel-metal batteries now used in most hybrids.

Mitsubishi also plans to study the joint development of parts for electric vehicles with PSA Peugeot Citroen, Europe's second-biggest automaker, it said earlier this week.

Mitsubishi fell 2 yen, or 1 percent, to 204 as of 1:16 p.m. on the Tokyo Stock Exchange today. They have risen 12 percent in the past year.

To contact the reporter on this story: Kiyori Ueno in Tokyo at kueno2@bloomberg.net

Last Updated: June 19, 2008 00:35 EDT