A third of cars used by government workers will be electric in four years time.
Transport Minister Simon Bridges, alongside Prime Minister Bill English made the announcement outside the Dowse Art Museum in Lower Hutt this afternoon.
Mr English said he was first impressed by an electric vehicle his friend drove him around in when in Australia last year.
"Kiwis are taking to electric vehicles. Today there are 4,200 (vehicles in New Zealand). National wants to encourage the uptake of electric vehicles".
There are currently around 15,500 vehicles used by public servants, including the Department of Conservation, Corrections, Housing New Zealand and DHBs.
The National government believes the investment will lead to a greater number of electric vehicles being available in the second hand market, and therefore making the cars affordable for more New Zealanders.