Japan to introduce new EV subsidy system

Subsidies for new electric vehicle purchases in Japan will from April reflect efforts to promote their wider adoption.

Currently, the amount is decided based on the specifications of each model, such as its range.

Under the new program the transport ministry will also assess after-sales services, the number of new fast-charging points, and other efforts to increase the use of EVs.

The new subsidy levels will also apply to jointly developed vehicles. For instance, a shopper who buys a Toyota SUV will be better off by about 5,600 dollars, while someone choosing the jointly developed Subaru version will gain 4,300 dollars.

Purchasers of so-called "kei-class" light vehicles developed by Nissan and Mitsubishi will save about 3,600 dollars.

However, subsidies on some SUVs from China's BYD will be slashed by around 3,300 dollars to just 2,300 dollars.