Chancellor Angela Merkel, in her weekly podcast Saturday, called for Germany to become the market leader in the new technology with a view to "having a million electric cars on our roads by 2020".
The cabinet is to discuss financial support for the industry as early as Wednesday on the strength of a report, due out Monday, in which the National Electro-mobility Platform", a government-sponsored commission of industry experts, recommends such a move, according to Welt am Sonntag.
The government is considering granting tax relief to the owners of electric cars, along with non-monetary measures such as special fast lanes and priority parking for such cars, the paper said.
"Contrary to what was earlier envisaged, there will be a very quick decision on government help", an unammed source close to the government told the paper.
The economic Wirtschaftswoche magazine reported earlier this month that the National Electro-mobility Platform commission would ask for "several billion euros' worth" of government support to spearhead the development of the new technology, seen as crucial to help reduce greenhouse gas emissions along with dependency on foreign oil imports.