Andreas Scheuer, a member of the CSU Bavarian conservatives, said he favoured a system of incentives to reduce carbon dioxide emissions rather than using a tax on carbon-based fuels, like the one favoured by the Social Democratic environment minister.
"I oppose taxes and additional burdens," he told Reuters.
German carmakers last month agreed to offer up to 3,000 euros ($3,400) per car to help Germany clean up toxic fumes from heavily polluting.diesel vehicles as part of a last ditch effort to avoid a court imposed ban on diesel vehicles.
"The manufacturers have to deliver," Scheuer said in an interview. "I hope that the pressure in the market leads to improvements for the diesel owners ... The government can't impose it, but it's clear the German manufacturers would be well-advised to win back the trust of the domestic market."
Scheuer also faulted the industry for lacklustre progress on developing alternative propulsion systems, such as electric cars, despite the fact that the government had spent around 5.2 billion euros on such programmes.
"Too little has happened there," he said. "The customers need functioning vehicles and not studies, and not pilot programmes that can be shown off at car shows."
He said many Asian manufacturers were moving ahead far more quickly to build large numbers of alternative vehicles, while German firms were still building just small numbers. ($1 = 0.8827 euros) (Reporting by Andrea Shalal; editing by David Evans)
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