AN electric vehicle firm says it could create 40 North-East jobs after securing more than £6m from investors.

Sevcon, in Gateshead, says a stock offer was oversubscribed by 50 per cent.

Bosses say the cash will support the firm’s growth, including up to 40 skilled posts and further research and development facilities.

The company, which employs more than 100 workers, designs and makes controllers for on and off-road vehicles, including Renault's two-seater Twizy quadricycle, as well as motorcycles, trucks, buses, fork-lifts and mining vehicles.

Matt Boyle, Sevcon president and chief executive, said: “We are delighted by the response of our shareholders to the rights issue and especially grateful to our larger shareholders, Gabelli Funds and Wells Fargo, for their substantial oversubscription.

“Our plans for deploying the capital raised in the offering are being worked through, and we look forward to updating stockholders on our progress in the coming months.

“It was extremely important for us to raise these funds in order to facilitate the continuing growth of the business, both organically and inorganically.”