The agency, Advantage West Midlands, wants fleets to stimulate demand for green vehicles powered by electricity, hybrids, diesels and biofuels that will be developed and built in the area.
It has invested £33 million in the Premium Automotive Research and Development programme, which works with companies across the West Midlands to develop new technologies.
Nick Paul, chairman of Advantage West Midlands, said: ‘We have been working with the Centre of Excellence for Low Carbon and Fuel Cell technologies and our counterparts in the East Midlands on the idea of forward commitment.
‘This means city councils in the region signing up to procure low carbon vehicles as an increasing proportion of their fleets in the coming years.
‘This would be an excellent example of procurement by the public sector being used to stimulate innovative technology.
‘If we are clever, this would result in locally-designed and locally-built vehicles having a more rapidly growing market for larger production volumes over time.’