An end to the “demonisation” of diesel cars and support for new technology such as battery vehicles that will help improve air quality topped the agenda at a summit between motor and Chancellor on Thursday.

Leading figures from the industry met with Philip Hammond and other ministers including Transport Secretary Chris Grayling at No 11 as they sought government backing for the UK's £77.5bn a year car sector.

The meeting – understood to have been requested by the Chancellor – was aimed at hearing the car sector's concerns, particularly about how British businesses will deal with the challenges thrown up by new technologies such as electric vehicles.

Car bosses are understood to have called for what one attendee described as "a long-term approach" from ministers, adding that they must "recognise that developing new technology is expensive and requires support, such as assurances that infrastructure is in place in the form of charging points and the electricty generation to support electric vehicles".

They are also understood to have voiced concerns about the "demonisation" of diesel, which has come to the fore in the wake of the VW scandal.