Motorists will be offered subsidies of up to £5,000 to encourage them to buy electric or plug-in hybrid cars under plans announced by the government.
It is part of the government's £250m plan to promote low carbon transport over the next five years.
But ministers do not expect eligible cars to hit the showrooms until 2011.
The car industry welcomed the plan, but critics said the government needed to invest more in places to recharge the vehicles and in public transport.
The strategy includes plans to provide £20m for charging points and other necessary infrastructure. At present they are very limited.
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