The world's leading luxury car maker, BMW, said Thursday it intends to launch its first all-electric urban vehicle in 2013, two years earlier than planned.
The firm's "Megacity" car "will be an emission-free city vehicle for metropolitan areas around the world," the Munich-based firm said in a statement.
Chancellor Angela Merkel's government aims to have one million electric cars on the road by 2020.
Daimler is poised to launch this year an electric version of its mini "smart" car, as well as a version of its Mercedes A class.
Meanwhile, Volkswagen, Europe's biggest automaker, expects to launch its electric car in 2013.