The panel in its report said that it plans to offer incentives to make such vehicles prevalent nationwide, in addition to developing infrastructure.

To achieve the goal of cutting reliance on oil to around 80 percent by 2030, the panel set forth its plan to start mass production of two-seater electric vehicles capable of running about 80 kilometers (50 miles) per charge, and 30 percent more fuel-efficient hybrid vehicles, by 2010.

The panel also hoped that after 2030 local car makers would start full-scale mass production of electric vehicles, powered by batteries manufactured at a 40th of the cost of current versions.

Japan, which has a target of 50,000 fuel-cell vehicles on Japanese roads in 2010, aims to raise the number of such vehicles in use to 5 million by 2020.