Legendary car designer Gordon Murray has unveiled a £250m expansion of his automotive business as it taps into burgeoning demand for electric vehicles.

Mohr Davidow is pumping the money into Gordon Murray Group (GMG) in addition to £50m the US venture capitalist has already committed to fund a new UK headquarters for the company.

Over the coming five years the money will be used to expand the business, increase research and development, and create a division focused on design and engineering for environmentally friendly electric vehicles.

Gordon Murray Group expects to create 200 jobs at its new base in Windlesham, Surrey, and nearby manufacturing facility at Dunsfold, home to the Top Gear test track, over the coming years.

Hailed as one of the premier automotive designers, Mr Murray was behind the McLaren F1 road car and also claimed five Formula 1 championships as technical director of the Brabham and McLaren racing teams.

Last year he unveiled his new T.50 road car, a lightweight vehicle capable of 220mph that costs £2.4m.

Eliminating weight not only allows cars to go faster, it is also essential in the design of electric vehicles, whose batteries are heavier than conventional power systems with the same output.

Applying design principles that eke out maximum performance from race cars by stripping out weight to electric vehicles will allow them to travel further, making them more practical.

Mr Murray’s company is already working on designs for a basic platform for a “revolutionary, lightweight, ultra-efficient electric vehicle … for future urban passenger vehicles and delivery vans”.

The new electric division will also develop electric power trains that will be used by global car companies in their own vehicles.

Mr Murray said: “We have a clear mission: pushing automotive and technology boundaries to be the best there is. These new developments are dedicated to pursuing this ambitious agenda.

“The automotive future will be increasingly electrified and it’s essential that we design the world’s lightest, most efficient and advanced EVs.”

As part of the expansion plan, GMG has appointed former Lotus executives Phillip Lee as chief financial officer and and Richie Rouse, who will head the new electronics unit.