TEPCO, the world's largest private power company, will provide technology on electric charging from home outlets and batteries to help Mitsubishi develop the car, the Yomiuri said in its evening edition.

Mitsubishi wants to start selling the small car, called the Miev, in 2008 at a price tag of two million yen (18,300 dollars) or less. The car will be able to run 250 kilometers (155 miles) on a four-hour charge from home power outlets, the report said.

A TEPCO spokesman said there was no deal as reported but said the power company "has been exchanging information on battery-linked technologies with various manufacturers, including Mitsubishi Motors."

Mitsubishi officials were not immediately available for comment.

The Miev would be a minivehicle, which by Japanese law means it has engine capacity of less than 660 cc in gasoline-powered vehicles. Roughly 60 percent of vehicles sold in Japan are minivehicles.

Japanese automakers have seen a major success, particularly in the US market, by selling environmentally friendly hybrid cars.

Mitsubishi is Japan's only money-losing automaker and is struggling to recover after a series of scandals over cover-ups of defects.

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