Tokyo Increases Subsidies for Electric and Hybrid Vehicle Purchases

The Tokyo Metropolitan Government in Japan has increased subsidies for the purchase of electric and hybrid vehicles in a bid to encourage more of its residents to switch away from fossil-fuel vehicles.

According to a Carscoops report on Tuesday, under the new scheme the subsidy value for each electric and hybrid vehicle purchase has risen by 300,000 yen (around Rp33.6 million) to a total of 1.3 million yen (around Rp145 million) for electric vehicles and 1.15 million yen (around Rp128 million) for hybrid vehicles.

The subsidy programme is open to both individuals and businesses, with no limit on the number of vehicles eligible for the subsidy.

Tokyo is also maintaining existing incentive policies, including the provision of 100,000 yen (around Rp11 million) for the purchase of cars equipped with vehicle-to-load capability, allowing power to be supplied from the vehicle to other devices.

In addition, the government provides a 100,000 yen subsidy for the installation of charging and power-discharge equipment, and offers an additional 150,000 yen (around Rp16 million) for vehicle owners who use electricity from energy providers with 100 percent renewable energy sources.

However, the amount of additional incentives provided by the government is not entirely the same for every electric vehicle brand.

According to a Nikkei Asia report, buyers of electric vehicles made by Toyota, Nissan and Honda can receive an additional subsidy of 400,000 yen, or around Rp44 million.

Buyers of Mitsubishi, BMW, Mercedes-Benz and Tesla vehicles can only receive an additional incentive of 300,000 yen, or around Rp33 million.

The additional subsidy value for buyers of BYD electric vehicles is lower, at just 100,000 yen or around Rp11 million, while buyers of Daihatsu vehicles currently receive no additional subsidy.

Additional incentives are given, among others, to manufacturers that sell at least 60 new zero-emission vehicles in the Tokyo area throughout 2025. There is also an incentive of up to 200,000 yen, or around Rp22 million, for the ‘green transformation’ category.

Subsidies from the Tokyo Metropolitan Government can be combined with incentives from the Japanese central government, which provides assistance of up to 1.3 million yen, or around Rp145 million.

The value of the Japanese government subsidy varies. Buyers of vehicles using Japanese-made batteries receive the largest assistance, while buyers of Chinese-made BYD vehicles receive a minimum subsidy of 150,000 yen (around Rp16 million).

The implementation of the subsidy policy for electric and hybrid vehicle purchases is aimed at helping to increase the use of more environmentally friendly vehicles.

In Japan, during 2025 sales of new electric vehicles accounted for around 1.6 percent of total new car sales.