Japan: government increased the subsidy for clean electric vehicles

On February 20, 2024, Japan's Ministry of Economy, Trade, and Industry (METI) revised the Clean Energy Vehicles (CEVs) Promotion subsidy, increasing the purchase subsidy for CEVs by JPY 50,000 (USD 130) per unit. CEVs include battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), and hydrogen fuel cell electric vehicles (FCEV). The new subsidy will apply to vehicles registered on or after April 1, 2025.

The subsidy increase aims to accelerate the adoption of CEVs in the domestic market, helping Japan achieve its 2035 goal of 100% CEV sales for private vehicles. Additionally, by promoting CEV adoption, the government supports the Japan Green Transformation project, which seeks to transi