Hybrid and low-emission vehicle development needs to be a key aim of Japanese auto policy, according to the economics ministry.
Local media reports said a panel working on behalf of the ministry of economy, trade and industry is urging government help for low emission models that ought to account for 50% of sales by 2020.
In an advisory report the panel said Japan should encourage progress in technology in a bid to establish international standards in segments such as electric vehicle batteries.
More details are expected in June.