Gordon Brown's plans to put Britain at the forefront of low-emissions technology could involve giving £2000 subsidies to electric car buyers, according to reports.
The Daily Telegraph newspaper reports that the prime minister is considering approving the incentive for announcement in the budget on 22 April.
Two forms of subsidy are said to be under consideration: directly paying some of the sale price of a car, or a scheme where buyers would apply to the government for money back after making the purchase.
The government will also hold talks with electricity suppliers to develop a national network of roadside power points where vehicles can recharge their batteries.
According to industry figures, only 179 electric cars were registered in the UK last year out of a total of 2.12 million.