| EV sales have doubled in Japan in the first half of 2026. [1] This has been spurred by some pretty large subsidies: > In January this year, the government raised the maximum subsidy for EVs by ¥400,000 to ¥1.3 million. While the maximum subsidy for minicar EVs remained unchanged at ¥580,000, many domestic models are receiving the full subsidy amount. > One EV model benefiting from this subsidy system is Honda Motor Co.’s compact Super-ONE, launched in late May. Originally priced at about ¥3.39 million, including tax, it can be purchased for ¥2.09 million — on par with minicar EVs — when the subsidy is applied. Demand has been overwhelming, with some dealerships temporarily suspending acceptance of orders. > The Tokyo metropolitan government raised its subsidy cap in July in response to rising crude oil prices caused by the deteriorating situation in the Middle East. Models from Toyota, Honda and Nissan, in principle, can receive subsidies of ¥900,000 or more per vehicle. If they keep up with these subsidies, I think we could see some pretty rapid adoption of EVs. Charging infrastructure still needs to improve, though. PHEVs are also eligible for subsidies, with the price of PHEVs being comparable to the cost of a HEV after subsidies. I think this can also help to get people used to the idea of driving EVs and charging at home. [1] https://japannews.yomiuri.co.jp/business/companies/20260707-... |