Solve the infrastructure, charging speed, and capacity (range), then we can talk about EVs. Otherwise, you're catering to the urbanite of which many can already walk and take public transportation in a densely populated city already.
Hybrid vehicles work fine. In fact, you don't really need a large capacity for improved fuel efficiency. You just need enough capacity to capture regenerative braking and accelerate from a stop. Just trade out the battery pack for super capacitors; once they become cost effective of course.