Audi is to test 20 of its extended-range electric A1 e-trons in and around Munich to determine how the car will be used day to day.
Two hundred ‘electric filling stations’ providing 'green electricity' will be installed around the city to support the ‘eflott’ project.
All 20 examples of the A1 e-tron will be operational by mid-2011 when the project, which forms part of the 'Model Region Electromobility Munich' initiative, will begin.
Peter Ramsauer, the German federal transport minister, said there was interest in how the transportation systems of the future will look and the project is a large field test to place 'electromobility' in real-world conditions.
He added: “Our goal is clear: we want to make Germany the lead market for electromobility and put at least one million electric vehicles on German roads by 2020.”
The project is being undertaken jointly with energy company E.ON, the Munich municipal utility company Stadtwerke München (SWM) and the Technical University of Munich (TUM).
E.ON and SWM will install the charging stations and the Technical University of Munich has been drafted in to analyse the data.
The A1 e-tron was unveiled at the Geneva motor show this year and has an all-electric range of more than 31 miles in city traffic, which can be extended to 124 miles.
It has a peak power output of 101bhp, and when the battery runs flat it is charged by a compact 'range extender' consisting of a single-rotor Wankel engine and an electrical generator with a charge rating of up to 15kW.
Top speed is 81mph, with CO2 emissions of 45g/km and average economy of 149mpg.