Volkswagen has revealed its all-new electric concept car at the Hannover Trade Show, which it dubs the future of urban city taxis.

According to Volkswagen, the Milan electric vehicle is the prototype for a future generation of urban taxis, which will be powered by electric motors. Volkswagen intends to market the Milan EV taxi in cities such as New York City, Cape Town, Milan, Berlin, Tokyo and Moscow.

The new taxi concept is painted in the green and black livery as the taxicabs of Milan, which is also where it gets its name from. The most noticeable feature of the Milan EV taxi concept is the single sliding door on the passenger side which extends partly into the roof and slides forward to the point of reaching the A-pillar.

The Milan EV taxi concept also previews a number of future design cues for future Volkswagen cars, such as the absence of a front grille, and the inclusion of a transparent crossbar between the headlights. Among the car concepts, the taxi sign to sit on top, and can be illuminated in three different colours, depending on whether the car is available or not.

Interior, the cabin features no front passenger seat, with the space used for luggage and commuters sitting in the rear. The concept consist of two iPad-like 8-inch touch screens, with one in the rear for passengers to see an overview of the route being taken, pay the fare or change the climate functions in the back of the vehicle. The other touch screen in front for the driver incorporates the taxi metre, the trip computer and a rear-door opener, as well as information about the car and a satellite-navigation system.

The Volkswagen Milan EV taxi concept has an electric motor that produces 114bhp, and is powered by lithium-ion batteries, which can be recharged up to 80% capacity in an hour. The Milan EV has a range of 300km when fully charged, and can reach a top speed of 120km/h.

According to Volkswagen, it intends to sell its first production electric cars by 2013.