The Japanese government plans to double the value of subsidies to promote sales electric vehicles (EVs), according to a report by the local Jiji Press agency.
The maximum subsidy would increase from JPY400,000 (US$3,830) to JPY800,000 per vehicle, according to unofficial sources cited in the report, on condition the vehicles are charged with renewable energy such as solar and wind power. The subsidies will apply to both private and corporate fleet purchases.
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By GlobalDataThe government expects to include the additional subsidy in its planned third supplementary budget for the current fiscal year, after prime minister Yoshihide Suga announced Japan’s new goal of reducing its effective greenhouse gas emissions to zero by 2050.
The government assumes the renewable energy will be generated by solar panels on the roofs of homes or from renewable energy generated by domestic power companies.
Increased subsidies will also be provided to buyers of other vehicles that use renewable energy, including plug in hybrid vehicles to a maximum of JPY200,000 and fuel cell electric vehicles to a maximum JPY2.25m.
