Tokyo Electric Power Co. and Fuji Heavy Industries Ltd. said Friday they will jointly develop an environmentally friendly electric vehicle based on Fuji Heavy's "Subaru R1e" prototype EV.

The R1e runs for up to 120 kilometers per charge. Vehicles that Tokyo Electric workers use cover a distance of less than 80 km per day on average. Tokyo Electric will study the feasibility of replacing some 3,000 small business-use vehicles with EVs, beginning in fiscal 2007.