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Clean energy incentive for EVs in Japan terminated

Discussion in 'Electric Vehicles' started by benji4, Feb 20, 2011.

  1. benji4

    benji4 Roadster 2.5 #0476

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    #1 benji4, Feb 20, 2011
    Last edited: Feb 20, 2011
    It's all over, you can no longer get $35,000 back from the Japanese government for buying a Roadster ($12,000 off on the iMiev, and $9,000 of on the LEAF also gone now.). I heard a couple of weeks back from the Tesla dealer that it was ending but I was unsure of the details. I have researched it further and here is what went down:

    (These links are just in Japanese, sorry about that...)

    1) Clean energy incentives for EVs announced

    Last year when the program was announced, for the current round incentives you were supposed to be able to apply until the current round cut-off of Feb. 8, 2011. The Roadster, being the most expensive EV got you back $35,000, $12,000 for an iMiev, $9,000 on a LEAF, etc. There was no notice that the program was to actually end Feb. 8, and I think most people assumed there would be at least another 6 month or 1 year block added on at the end of the first round. At a bare minimum people thought that they had until Feb. 8 to make their purchase, and most likely well after that.

    2) Clean energy incentives for EVs terminated

    With no prior warning on Feb. 1, the Clean Energy Dept. announced that the incentives were over -- and that Jan. 31 was the last day to have purchased a car to have been eligible! The link above says there are no plans at the moment for another round of rebates, so as far as one knows the rebates are officially over. Folks who were about to buy their EV near the end of the first round and thought they were locked in have just had their legs cut out from under them. A bit hideous really....

    Why was the program cancelled with 1 week left to go? Who knows, but it seems like some of the policy makers were not happy about financiing peoples' car purchases, especially if the price was in Roadster territory! And since Roadster sales here have been picking up quite a bit in the past month or so, nuking the last week of the program has surely saved the government some money and cost Tesla at least a number of Roadster sales.

    It's all a bit sad, but I'm glad of course I was able to take advantage of the government's generosity while it lasted! I pick my car up this Friday.... :smile:
     
  2. mpt

    mpt Electrics are back

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    I'm not so sure that Roadster sales would be affected by this but it's certainly a blow. Perhaps it considers incentives to be unnecessary.
     
  3. EVNow

    EVNow Active Member

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    I thought it will be around till end of March. Will this affect all EVs (translations aren't too good) ?
     
  4. benji4

    benji4 Roadster 2.5 #0476

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    Unfortunately the subsidy is gone, and yes, all EVs are affected. Still, many taxes are waived on EVs so it's not a total wash, but the taxes are probably worth $400 per year or something... so compared to getting between $10,000-$35,000 depending on the EV, the situation has definately taken a turn for the worse. While it is possible the program could be reinstated at some point, it's probably not likely.
     
  5. EVNow

    EVNow Active Member

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    Wow. This has profound impact on Nissan Leaf deliveries - in the US ! Nissan has been delivering in Japan to use the EV rebate. I guess they will start major US/EU deliveries.

    Wonder whether Toyota / Honda had a hand in this. Nissan must be poor in lobbying.
     
  6. benji4

    benji4 Roadster 2.5 #0476

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    Yes, just seems crazy.... I saw my second LEAF last night which was parked right outside my office. I talked to the driver about his LEAF which he just got last week he said. Amazingly, he said that he missed the deadline and did not get his million yen payment. I'm not sure how he picked his car up that fast as the deadline only passed 3 or 4 weeks ago.
     
  7. Jaff

    Jaff Active Member

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    There's almost something fishy about this move by the Gov. of Japan...does anyone know of any other countries taking a backwards step like this?

    If more Leafs will be exported than purchased domestically, it will help Japan's trade surplus...
     
  8. benji4

    benji4 Roadster 2.5 #0476

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    The thing that was the most harsh was ending the program a week early with no notice, just when many people were probably trying to close their contracts to buy cars. One would think that many people would just cancel their plans, while some others might still follow through but do so with a pretty bad feeling about the whole thing. Obviously it was done purposely at that time to cut off a final rush of buyers who thought they still had time left, so it saved the government money, but prevented a lot of EVs from getting on the road. I'll try to get some color on the situation from the Tokyo sales people when I go to pick my car up tomorrow.

    On the flip side, one good thing about the car market in Japan is there is 0 import tax on cars (vs. 2.5% for the US, and much, much more than that for some countries). In countries such as Australia and Singapore, a Roadster sells for more than $250,000 because of taxes. In fact, Tesla just pulled out of Singapore completely because the government there went back on a long standing promise to waive all of their outrageous taxes on EVs.
     
  9. vfx

    vfx Well-Known Member

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    That was mentioned elsewhere. Tesla actually closed one of their stores because of the way they were treated.
     

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