Japan weighs cutting EV subsidies amid net zero debate

Japan's government is debating trimming or scrapping subsidies for EVs and fuel cell vehicles to save budget. The Finance Ministry wants to end the payouts, while METI seeks $696 million to extend the program in its FY 2027 budget. EVs and fuel cell cars made up just 5.8% of new car sales in September.

• Japan's EV and fuel cell subsidy reaches $8,240 per vehicle
• METI requested $696 million to extend the program in FY 2027
• Maximum subsidy drops to $4,939 from January 2027
• EV and fuel cell share of new car sales was 5.8% in September