According to Nippon, Japan's Environment Ministry announced a temporary increase in subsidies for purchasing electric vehicles - BEVs, PHEVs and FCVs.

The maximum incentives for plug-ins will double:

  • BEVs: from 400,000 yen to 800,000 yen ($7,743)
  • PHEVs: from 200,000 yen to 400,000 yen ($3,872)

Although, this is only if all the electricity for charging (at home or at work) comes from a renewable energy source.

The government envisioned 8 billion yen ($77.4 million) for the program - it would be enough for less than 10,000 BEVs (full amount).

The most shocking thing is however that the hydrogen fuel cell vehicles (FCVs) will get an increase of available subsidy - "by several hundred thousand yen" -  from the already insanely high level of up to 2.25 million yen per vehicle ($21,780).

We don't know exactly how high it might go, but at 2.7 million yen per vehicle, it would be over $26,000 or over €21,000. That's almost a net price (without taxes) of an entry-level new electric car.

If this is the support required to sell a few thousand FCVs (we doubt they sold more in Japan), we guess that they are completely not competitive with any other type of vehicle. It's absurd.

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