FRANKFURT (Reuters) -- German politicians and auto executives will discuss creating incentives worth up to 5,000 euros ($5,500) to boost sales of electric and plug-in hybrid cars, Horst Seehofer, a senior ally of Chancellor Angela Merkel said.
Germany has set itself a goal of bringing 1 million electric cars onto its roads by 2020, but has so far made little progress in encouraging drivers to switch from more polluting - but also generally cheaper - diesel and gasoline vehicles.
The heads of the three parties in Merkel's ruling coalition have discussed introducing a subsidy for green car buyers, said Horst Seehofer, leader of the Christian Social Union (CSU), sister party of Merkel's Christian Democratic Union (CDU).
Seehofer said the government was looking into whether automakers could co-finance the new incentive and that Merkel would discuss the issue with company executives.
Asked whether he was backing proposals to introduce an incentive of up to 5,000 euros, Seehofer said: "Bavaria is very much in favor of the buyer's premium." Seehofer is the premier of Bavaria, the southern German state where carmakers BMW and Audi are based.
A spokeswoman for Germany's Economy ministry said: "Talks within the German government are constructive. We are counting on arriving at a good solution to help achieve our goals."
In 2015, 23,500 electric and plug-in hybrid vehicles were registered in Germany. Of these, only 12,300 were pure electric cars, according to Stefan Bratzel at the Center of Automotive Management in Bergisch Gladbach.