London, July 21 : British Prime Minister Gordon Brown is studying a new scheme to encourage people to use environmentally friendly vehicles rather than those propelled by petrol or diesel — giving away electric cars for free or at a heavily subsidised price.

Senior Downing Street sources say that Israeli businessman Shai Agassi, 38, has proposed the plan to the PM.

If cleared, the scheme would require people to sign an agreement with a company to run the hybrid cars, and buy electricity to charge their batteries.

"Electric cars are going to be the future and we are looking at ways of incentivising people to use them,” the Mirror quoted Downing Street as saying.

"By 2020 most cars sold in Britain should be electric," the report added.

The newspaper also says that Brown will meet manufacturers this week to try to persuade them to mass-produce electric cars.

The Prime Minister will also outline his plans to accelerate the use of electric cars at the Motor Show this week. (ANI)