June 15, 2015 / 6:15 PM / 4 years ago

UPDATE 1-Merkel says Germany weighs further support for electric cars

* 1 mln sales goal untenable without state backing -Zetsche

* Only 19,000 electric cars sold in Germany in 2014 -PwC

* Need start-up funding to spur demand -Zetsche (Adds Merkel, Daimler CEO quotes, detail and background)

BERLIN, June 15 (Reuters) - Chancellor Angela Merkel said her government is examining further support to help bring one million electric cars onto German roads by the end of the decade and aims to make a decision by the end of the year.

Fellow European countries such as Norway and the Netherlands have created incentives to spur demand for electric cars which in Germany continues to suffer from high costs, range limitations, poor recharging infrastructure and falling oil prices.

“Germany will have no choice but to offer further support (for electric cars) although we’ve already done some things,” Merkel told a conference to promote electric car technology on Monday in Berlin.

“We will once again study all instruments of support that are also available internationally,” the chancellor said.

Once promoted as a technology that would crowd out conventionally-powered cars, sales of electric autos continue to fall short of expectations.

A survey by PricewaterhouseCoopers on Monday showed drivers need financial incentives to pay extra for electric cars whose sales in Germany totalled no more than 19,000 autos last year.

Germany has so far refused to provide generous sales incentives for electric vehicles and the government’s measures taken to date include tax breaks for owners of emission-free cars and about 1.5 billion euros ($1.69 billion) of funds for related research projects.

Daimler Chief Executive Dieter Zetsche said industry representatives again told Merkel on Monday that European Union demands to cut average vehicle fleet emissions to 95 grams per km by 2021 cannot be met without a “considerable” share of electric cars of overall auto sales.

The government should consider temporary start-up funding of electric car sales to help get demand off the ground, the Daimler CEO said. An industry official also called for special write-downs on electric company cars.

“We need some of the tools as accompanying measures by the government if we want to have a chance to achieve the 1 million (sales) goal,” Zetsche said.

$1 = 0.8870 euros Reporting by Andreas Cremer and Caroline Copley.; Editing by Michael Nienaber and David Evans

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