EV vs petrol car: what does ownership really cost in Japan?

日本語

CEV補助金 (national CEV purchase subsidy), FY2026: up to about ¥850,000 from the national government (METI / Next Generation Vehicle Promotion Center) when you buy a new EV — the amount varies by model and by how far the manufacturer supports charging infrastructure and servicing. Plug-in hybrids get a reduced amount; hybrids and petrol cars do not qualify. The budget is capped and applications can close partway through the fiscal year. There is a mandatory holding period (in principle 4 years) — sell early and you may have to repay the subsidy. Not every buyer or model qualifies — which is why we show the subsidy separately and have not folded it into the totals above. Source: METI / Next Generation Vehicle Promotion Center (NeV), as of 2026/07/01. Check eligible models and the remaining budget before you buy.

Local-government subsidies: on top of the national CEV補助金 (CEV subsidy), prefectures and municipalities sometimes run their own EV purchase support — in Tokyo, depending on the conditions, it can reach several hundred thousand yen. Amounts, conditions and application windows differ completely from one authority to the next, and schemes close once the budget cap is reached. They can often be combined with the national subsidy, though that is not guaranteed. We deduct this support from the EV's running costs only — never from a petrol car's — and it is not built into the total costs. As of 2026/07/01. Check the latest conditions with your local authority.

Shaken and automobile taxes: in Japan every car must pass the 車検 (shaken) roadworthiness inspection 3 years after first registration and every 2 years after that, typically costing several tens of thousands of yen — sometimes well over ¥100,000 — per round, servicing included. This is not a cash incentive but an unavoidable running cost, and it applies to EVs and petrol cars alike. Under the エコカー減税 (eco-car tax reduction) and the グリーン化特例 (green-car tax special measure), EVs are exempt from the vehicle weight tax at first registration and get roughly a 75% cut in the following year's automobile tax (種別割, the by-type levy). We book shaken and automobile taxes in full as running costs, and the EV's tax breaks show up only on the EV's side of the ledger. Basis: eco-car tax reduction and green-car special measure (エコカー減税・グリーン化特例), as of 2026/07/01.

About past subsidy schemes (for reference): EV subsidy amounts are reviewed every fiscal year, and figures such as up to ¥850,000 per vehicle have made headlines in the past. But amounts, conditions and budget caps change every year, and applications can close partway through the fiscal year — never rely on an old "get up to ¥X" claim as-is. Always confirm the current, exact figure from official sources at the time of purchase. We mention this only for reference and have not included it in our calculations.