A new initiative to launch a Europe-wide plan for an electric car will be launched as part of the Spanish presidency of the EU next month.
Spanish rime minister José Luis Rodríguez Zapatero, whose country currently holds the EU presidency, said there was a need for a pan-European strategy to produce a viable electric car.
Mr Zapatero said he had met some of Europe's biggest car manufacturers in recent days who impressed upon him that the EU should take a lead in developing electric vehicles.
The outcome of the meeting will be unveiled in San Sebastian on February 8th.
The European Commission is already working on its proposals for electric cars which the Commission President José Manuel Barroso described as a "very important" part of its green strategy.
Mr Zapatero told MEPS in the European Parliament that the car industry was already going huge change and there was a need for a co-ordinated response and a common strategy.
He said competitors such as China and Japan would have the advantage unless EU car manufacturers had the right incentives to invest in electric vehicles.
"It was felt to be fundamental that there should be co-operation of efforts in developing the electric vehicles among all EU countries with the commission taking a lead in developing electric cars," Mr Zapatero said.
He added that there was a need for a regulatory framework to provide financial support for electric vehicle manufactures, common standards and technologies without which it will be "difficult for Europe to take a lead in this area."