![Tesla Model Y. [Tesla]](https://wimg.mk.co.kr/news/cms/202512/17/news-p.v1.20251217.b0835c2860944c97a52567e2c6b5a094_P1.png)
The Japanese government will close the gap between subsidies for electric vehicles (EVs) and hydrogen fuel cell vehicles (FCVs) from January next year. Separate taxes are also imposed on electric vehicles that weigh a lot.
The Yomiuri Shimbun reported on the 17th that the Japanese government announced a plan to revise the “Clean Energy Vehicle Introduction Promotion Subsidy” rule to subsidize eco-friendly cars registered from January next year.
When the new system is applied, the upper limit of purchase subsidies for EVs will increase from the current 900,000 yen (about 8.58 million won) to 1.3 million yen (about 12.39 million won), and plug-in hybrid vehicles (PHVs) will increase from 600,000 yen (about 5.72 million won) to 800,000 yen (about 7.63 million won). The purchase subsidy for EV compact vehicles will be maintained at 580,000 yen (about 5.53 million won).
On the other hand, the upper limit of subsidies related to FCV will be significantly reduced from the current 2.55 million yen (about 24.31 million won) to 1.5 million yen (about 14.3 million won) from April next year.
This comes after Japan accepted Tesla’s complaint, which is competitive in EVs, and promised to narrow the subsidy gap between EVs and FCVs during the U.S.-Japan tariff negotiations.
![The all-new Nexo hydrogen car unveiled at the Japan Mobility Show in October. [Hyundai Motor Company]](https://wimg.mk.co.kr/news/cms/202512/17/news-p.v1.20251217.80fa21a96f924c5fb884320cc5ea5c8c_P1.png)
Hyundai Motor unveiled its second-generation new “Diol New Nexo,” a hydrogen car, at the Japan Mobility Show in October and aims to officially launch it in Japan in the first half of next year. As the subsidy system is reorganized this time, it is expected that a new strategy for entering Japan will have to be devised.
At the same time, the Japanese government and the ruling party are discussing introducing an ‘EV weight tax’ that imposes additional taxes on EVs and PHVs based on vehicle weight from May 2028.
This is due to the criticism that electric vehicles are heavier than general internal combustion locomotives, and that internal combustion locomotives pay gasoline taxes, but EVs have no corresponding burden.
The EV weight tax is being collectively collected during vehicle inspection, and the specific tax amount is planned to be reviewed over the next year.
