Japan offers up to 7,300 € to buy an electric car, but under one condition

Japan is offering substantial subsidies to boost sales of electric vehicles. For example, a Toyota bZ4X receives a subsidy equivalent to about 7,300 euros. However, recipients must keep their vehicle for four years, otherwise they risk having to repay all or part of the amount.

Subsidies with a four-year requirement

In recent months, the Japanese government has decided to take aggressive measures to reduce the price of electric cars. For the Toyota bZ4X, the subsidy can amount to up to 7,300 euros, or approximately 1.3 million yen. This is a significant sum sufficient to alter the SUV’s pricing strategy and boost its sales in the domestic market. However, note that Tokyo requires a condition in return...

Starting from the registration date, the vehicle is subject to a four-year restriction period. With this new rule, Japanese authorities aim to prevent buyers from taking advantage of government subsidies before immediately reselling the car, potentially profiting from the price increase later on.

Selling is allowed, but repayment is required

It should be clarified that this is not a complete ban on resale. In fact, the owner can sell their car before the four years are up, but they must first obtain permission from the agency responsible for managing the program. Requests made after the transaction are not accepted. Moreover, a portion of the subsidy must be refunded proportionally based on the remaining time.

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To receive the maximum subsidy, selling the car after one year would result in a refund of approximately 75% of the amount received (5,500 €). This drops to 50% after two years and 25% after three years. Authorities in the country state that selling without permission could lead to a full refund.

Even a gift can be considered a transfer

Furthermore, the regulation adopts a very broad definition of “transfer.” It’s not just sales: takeovers by dealers, transfers to relatives, gifts, rentals, or even using the car as collateral for a loan are all covered. The same applies to scrapping the vehicle... There’s no way to cheat!

Exceptions exist, particularly when a vehicle is destroyed by a natural disaster or in an accident for which the owner isn’t responsible. But administrative procedures are still required. Thus, Japan follows a clear strategy: the bonus is generous, but it must be used to promote long-term use of electric vehicles, not opportunistic transactions.