The technology used for electric car batteries is so backward they will die after just two years, experts have warned.
The cars will also be extremely expensive to run and cover far less distance on one battery charge than previously claimed, they say.
David Cameron recently confirmed the Government would go ahead with a £20million grant to help Nissan build electric cars in the North East.
As part of the drive to replace petrol and diesel-powered cars, a Government incentive scheme also offers those who buy electric vehicles a £5,000 rebate.
There are also plans to spend millions on building a network of charging points in London and other cities.
However, research by the Institution of Engineering and Technology suggests claims about the performance of electric vehicles are 'pure fantasy'.
A team at the institution's magazine, E&T, found the batteries are likely to burn out within two years, requiring expensive replacements. And it says the batteries, which use the same lithium-ion technology as mobile phones, are unlikely to be able to run for more than 100 miles between charges.
Experts at E&T said the gap in performance between conventional cars and electric vehicles is so huge that consumers will not want to convert to electric.
They pointed out a standard model Ford Focus or Volkswagen Golf is capable of travelling more than 360miles on one tank of fuel, easily maintaining 70mph.
For an electric car to offer a similar level of performance, the batteries alone would weigh 1.5 tons.
They would be larger than an entire conventional car and cost approximately £100,000, experts warned. The cars themselves will cost around £30,000.
'Manufacturers' range calculations are based on running a complete-cycle from full battery to empty,' the E&T experts said.
'Yet, they already know that to have any hope of getting a reasonable life from lithium-ion batteries they should not be run from full to empty but should be kept between 20 and 80 per cent of their charge.'
Peter Miller, of automotive consultants Ricardo, said: 'To get a vehicle that behaves the same way as a petrol or diesel model is not viable for the foreseeable future.'
Nissan claims its Leaf electric car, which will have a range of 47-138 miles, can be recharged to more than 80 per cent of its capacity in just 30 minutes at charging stations.
Nissan seems likely to get around the problem on battery burn out by leasing them to customers, so they don't need to go to the expense of buying them outright.
It is the car that delivers the equivalent of 300 miles per gallon and produces water instead of exhaust fumes.
This pollution-free two-seater uses hydrogen to generate the power to drive its electric motors. Thirty of the cars, which have a top speed of 50mph and a range of 240miles on one tank of hydrogen, will be available to 'guinea-pig' motorists in 2012.
If the trial is successful the small company behind the car, Riversimple, hopes to make 5,000 of them a year.
However, as part of its plans to create a 'green' vehicle for cities, Riversimple will lease the cars rather than sell them. Drivers will pay £200 a month and then 15p a mile as part of a business model similar to a mobile phone contract.
So far the company has spent around £3m developing the technology and is trying to raise £20m more to put the car into full production.
The two-seater urban car accelerates from 0-30mph in 5.5 seconds. If the trials are successful, the company will consider building a factory in Leicester which would employ 250 people.
The project is being backed by relatives of Ernst Piech, the German family dynasty which founded Porsche and has a key role within Volkswagen.
The company has now signed a deal with Leicester City Council for a 12-month pilot which will see 30 of the cars rented out to private customers, businesses, car-share schemes and local government officials in the city.
Part of the project involves identifying suitable places for hydrogen pumps where drivers can actually refuel.
The technology powering the car works through a chemical reaction similar to traditional electrolysis experiments familiar to generations of schoolchildren.
The highly explosive hydrogen is not burned. Instead, the gas flows over a membrane in a special 'fuel cell' where the chemical reaction produce electricity, which in turn powers the electric motors on the wheels.
The only emissions out of the exhaust are pure water - from the hydrogen gas reacting with oxygen to produce H20 - and a little heat.
Hugo Spowers, the founder of Riversimple, said: 'The age of fossil-fuelled cars may not be over yet but it is surely dying.
'Contrary to what we usually hear, sustainable, near pollution-free transport is possible, here and now, using existing technology.'
Fuel cells work by turning hydrogen and oxygen into electricity - to power the car - and water
The company has also received backing from the new coalition Government backing. Chris Huhne, the Liberal Democrat Energy and Climate Change Secretary, said: 'We need to harness cutting edge technology to reduce our dependence on fossil fuels if we are to tackle climate change.
'Nowhere is this more important than with passenger cars, which are responsible for almost 60per cent of domestic transport emissions.
'A radical transformation of our transport network is needed in the next 40 years and this is another great example of British innovation developing low carbon solutions to bring that about.'
The car, which weighs only 350kg, can recapture its own motion energy when braking, providing 80% of the power needed for acceleration.
Riversimple hopes that by 2015 it will have manufactured a four-seater version of the car which can be used safely on motorways and for long journeys. By 2020, it plans to have tens of thousands of cars on British roads.
Councillor Abdul Osman, in charge of regeneration and transport at Leicester City Council, said: 'This hydrogen fuel-cell car is another example of revolutionary technology being used to meet future transport needs.
'This is yet another step in making Leicester a better place to live, and proposals to build the cars locally if the scheme proves successful could also mean a major jobs boost for the city.'
Deliver YOUR Content, ANY Content to Google Gadgets, Google Desktop, Yahoo Widgets, FaceBook, Thousands of News Aggregators ... And the Mighty Google.com Within Hours.
Welcome to The Very Profitable Future of eLert Marketing
If you currently deliver content via auto responder, You Tube, Myspace, Blogger, Digg, RSS, web page or email, you can now push to multiple gadget platforms...