TOKYO, JAPAN - TOKYO'S local government, seeking to fight global warming, said on Thursday it planned to exempt taxes on next-generation green vehicles such as electric cars and plug-in hybrids once they hit the market.

Japanese automakers are aiming to put out electric cars - which emit no carbon blamed for global warming - as early as this year despite the global slowdown that has battered the auto industry.

Some automakers are also working on plug-in hybrid cars powered by petrol and electricity and are rechargeable at a power outlet at home, letting motorists drive longer distances.

The Tokyo metropolitan government plans to exempt taxes on purchases and maintenance of the super-low emission cars from the next fiscal year starting in April, local official Motofumi Kojima said.

The plan by Tokyo - which is the world's largest city when including the metropolitan area - comes as Japan struggles to meet its commitments to cut emissions under the Kyoto Protocol.

'We plan to submit a budget plan for tax exemption worth a total of about 160 million yen (S$2.55 billion), which is equivalent to tax exemption for 300 next-generation vehicles,' Mr Kojima said.

The plan still needs approval by the metropolitan assembly, which convenes next month, he said.

The central government is also looking into cutting taxes on next-generation green cars. It already exempts tax on the current generation of hybrid cars, which have become major hits overseas for Japanese automakers.