Japan cuts subsidies for electric cars with Chinese batteries

The country’s authorities have changed the rules for subsidizing the purchase of electric vehicles. Now officials evaluate models using a point system, and the maximum discount is given to buyers who choose equipment with Japanese-made traction batteries.

For this reason, the Nissan Ariya crossover, whose electrical system uses batteries from the Chinese company CATL, will become less interesting to buyers. If previously the model was previously covered by a 1.29 million yen subsidy, now the subsidy amount has been reduced to 1 million yen.

CATL products are used by many global automakers. Although, for example, Toyota prefers to use PES (Prime Planet Energy & Solutions) batteries for the domestic market, that is, a joint venture between Toyota and Panasonic.

The new rules are aimed at creating an artificial barrier for Chinese electric cars. For example, BYD cars previously received benefits from 350 thousand to 400 thousand yen, but now their size has been reduced to 150 thousand yen.

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