Japan Has Doubled Incentives for Purchasing Electric Vehicles

Photo: @stillwellz/Tesla

In October, at the G20 Summit, Japanese Prime Minister Yoshii Suga announced an international commitment to achieve the goal of near-zero greenhouse gas emissions by 2050. One of the key points of the promise is to promote the proliferation of electric vehicles, so the government has doubled the amount of incentives for purchasing them.

The policy provides for the inclusion of necessary costs in the third supplementary budget for 2020 and the introduction of a system for providing incentives next year. Japan's Ministry of the Environment and the Ministry of Economy, Trade and Industry intend to double the current vehicle incentives to ¥800,000 ($7,700) from ¥400,000 ($3,850). The total corresponding budget is ¥8 billion ($177.2 million).

Thus, incentives for the purchase of plug-in hybrids will grow to a maximum of ¥400,000 ($3,850) from ¥200,000 ($1,925). Pure electric vehicles such as Tesla will be able to get maximum incentives of up to ¥800,000 ($7,700).

These incentives can be used together with incentives provided by local authorities. For example, in Tokyo, pure electric vehicles will be able to receive incentives of up to ¥1.1 million ($10,600).

Japan may also join the list of countries that will soon ban the sale of new gasoline-powered vehicles. According to the plan, the ban could take effect in the mid-2030s. By the end of the year, Japan's Industry Ministry is to develop a plan for a phased transition to electric and hybrid vehicles.

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