By Kentaro Otsuka / Yomiuri Shimbun Staff Writer
The president of BYD Auto Japan Inc. has criticized the Japanese government's revised subsidy calculation criteria for eco-friendly vehicles such as electric vehicles, saying, "I don't think this will lead to a very good outcome."
Atsuki Tofukuji, president of the Japan unit of major Chinese EV maker BYD Co., made the remark to reporters in Kawagoe, Saitama Prefecture, on Friday, raising concerns about significant disparities in subsidy amounts regarding EVs.
Having entered Japan's passenger car market in 2023, BYD has since expanded to about 70 stores.
The government's subsidies for eco-car purchasers are capped at 1.3 million yen for EVs, 850,000 yen for plug-in hybrid vehicles (PHVs), and 1.5 million yen for hydrogen fuel cell vehicles (FCVs).
Subsidy amounts are calculated based on factors such as the installation of charging infrastructure. As of last fiscal year, BYD vehicle subsidies stood at 350,000 to 450,000 yen. With the introduction of the new criteria, which includes whether the vehicle uses domestically produced batteries, they have been reduced to 150,000 yen.
The change in calculation criteria is seen as an effort to strengthen the domestic EV supply chain. Tofukuji expressed some understanding in this regard, saying, "It is only natural to prioritize domestic manufacturers."
However, he noted that the specific calculations used to determine current subsidies has not been disclosed. "As (the imported car) industry, we should demand that the system be administered in a way that maintains a sense of fairness," he said.
Meanwhile, regarding imported EVs, Tesla stood out, with the subsidy set at 1.27 million yen, the same as last fiscal year and nearly the maximum amount. This is believed to be due to the use of Japan-made batteries.
"We view this as a sign of the government's trust in us," Richi Hashimoto, head of Tesla Inc.'s Japan unit, said at a new model launch event on Friday.
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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April 07, 2026 08:05 ET (12:05 GMT)
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