Japan to cut maximum EV subsidy by 40% to 750,000 yen from 2027
XLY•Japan will cut the maximum subsidy for newly registered EVs to 750,000 yen from 1.25 million yen starting January 1, 2027; subsidies for kei EVs, plug-in hybrids and fuel-cell vehicles will also fall.
1. Subsidies to decline
Japan will lower the maximum subsidy for newly registered EVs by 40%, to 750,000 yen from 1.25 million yen, starting January 1, 2027. The maximum subsidy for compact kei EVs will fall to 440,000 yen from 550,000 yen, while plug-in hybrid subsidies will drop to 480,000 yen from 800,000 yen and fuel-cell vehicle subsidies to 870,000 yen from 1.45 million yen.
