Government subsidies and new models push the EV market
Sales of electric vehicles in Japan more than doubled in the first half of the year compared to the same period in 2025. According to data released by automotive trade associations, 59,337 electric cars were registered between January and June, with EVs accounting for around 3% of the total passenger cars sold in the country in the period considered.
According to manufacturers, the surge is linked to a combination of factors: on the one hand the arrival on the market of new models, on the other the support of more generous public incentives. In January, the central government increased the state contribution for the purchase of electric vehicles for private use by more than 40%, bringing it up to a maximum of 1.3 million yen, equal to approximately 7,000 euros. Among the major manufacturers, says the public broadcaster NHK, Honda reported that a high-performance model launched on the market in May has already collected over 10 thousand orders with long waiting times for delivery.
On the local incentive front, in July the Tokyo metropolitan government also increased its subsidy for the purchase of electric vehicles for residents and businesses registered in the city by 30%, equating it to a maximum of 1.3 million yen. The strengthening of domestic demand, explains the NHK, comes at a time when the Japanese automotive industry aims to recover ground by focusing on new models and an increasingly structured public incentive system.
