The government needs to boost efforts to promote low-pollution cars, according to an interim report released by a panel under the Environment Agency on Friday.

There were only 29,000 low-pollution cars, such as electric, gas and hybrid engine cars, on the road as of the end of fiscal 1998 -- far below the target of 300,000 vehicles by 2000 set by a 1992 law intended to reduce nitrogen oxide concentrations in the air.

The report says the higher price of clean cars and a lack of infrastructure to support them are major factors limiting their acceptance.

The report calls for further consideration of regulatory policies -- including those for mandatory introduction, production, sales and fuel supply for such vehicles -- by manufacturers and companies.

Economic mechanisms, such as subsidies and tax incentives, will also be considered by the panel, which will release a more definitive set of recommendations by December, officials said.

Nitrogen oxide is associated with respiratory disorders, such as asthma.