Tokyo and California expand electric‑vehicle purchase subsidies

From July 1, Tokyo increased its zero‑emission vehicle (ZEV) subsidy for new cars by up to ¥500,000‑¥600,000, while Chinese manufacturers such as BYD receive only an additional ¥100,000. Under the national Clean Energy Vehicle (CEV) programme, BYD’s subsidy has been cut to ¥150,000, the lowest level, whereas Tesla can receive up to ¥1.27 million. The Tokyo boost, combined with existing national and local incentives, aims to accelerate EV adoption but has drawn criticism for treating Chinese‑origin EVs less favorably.

California announced a new rebate program that will provide first‑time electric‑vehicle buyers with an instant discount of up to $3,500. The plan, funded by more than $135 million in the state budget and contributions from manufacturers, applies to new EVs priced at $50,000 or less and to used EVs priced at $25,000 or less, with a $1,750 rebate for qualifying used vehicles. Unlike tax credits, the rebate is applied at the point of sale, directly reducing the purchase price.