Headline Target: All new cars sold by 2035 will be ‘environmentally friendly’

Car Manufacturing Country: Toyota, Honda, Nissan, Suzuki, Daihatsu, Mazda, Mitsubishi, Subaru.

Purchase Incentives for Cars: Vehicle weight tax exemption, lowered road tax.

Supplier Regulation Policy: Emissions performance standard (tightening CO2 regime)

Infrastructure Incentives: Subsidised charging infrastructure

Japan’s status as a vehicle manufacturing giant may be in trouble. The country was one of the first to invest heavily in EVs infrastructure and manufacturing. However its manufacturers have bet big on alternatives, such as hybrids and hydrogen. The government provides subsidies for EVs, PHEVs and fuel cell technology, and subsidises the research and development of EVs. But Japan and its manufacturers are on the back foot in an increasingly electrifying market.