The programme is being jointly funded by the government and OEMs, and will see buyers of electric cars with a list price of less than €60,000 awarded a €4,000 contribution. Buyers of plug-in hybrids under this price bracket will be granted €3,000.

The programme will begin from next month and will continue until 2019 or until the funds are used up – whichever comes first.

To date, Volkswagen, Daimler and BMW have signed up to the programme but all carmakers can sign up to it.

In addition the Federal Republic of Germany will invest a further €300m on new public fast charging networks while another €100m will go towards meeting a target of 30% of government vehicles being powered by alternative powertrains in the future.