The UK-based firm Ricardo has embarked upon a new £1.2 million project to develop an affordable and production-feasible micro-hybrid diesel delivery vehicle.

The HyTrans project aims to achieve a 15-25 per cent improvement in fuel efficiency, according to reports on DieselNet.

It is expected to last one year with a prototype demonstrator vehicle based upon the existing Ford Transit being constructed at the end.

CO2 emissions are also expected to be cut by around 15-25 per cent on the back of the improved fuel consumption. Diesel cars also use platinum catalysts to control harmful exhaust emissions.

However, Ricardo and its partners - Ford, Valeo SA and the Gates Corporation - insisted that the improvements would not compromise performance or driveability.

The UK Department for Transport is providing half of the funding for the scheme with the rest being split between the project partners.