[2021/11/29 update] Ministry of Economy, Trade and Industry announces increase in EV purchase subsidies by more than double? I checked what happened when

*The article first appeared on September 4, 2021. *The first photo is the Toyota “bZ4X” concept, which is scheduled to be released globally in 2022.

EV purchase subsidy is up to 800,000 yen. Light EV also increased to a maximum of 500,000 yen Introduction promotion subsidy” was included. The total amount of the proposed budget is 37.5 billion yen, which subsidizes "purchase of electric vehicles, plug-in hybrid vehicles, and fuel cell vehicles" and "development of charging and hydrogen charging infrastructure." After this, it will be implemented after the Diet approves and enacts the supplementary budget bill.

Several systems are being considered in parallel for national subsidies for purchasing electric vehicles. what will happen Let me recapitulate the current situation.

First, the subsidies decided by the Cabinet this time. We will support the introduction of electric vehicles, plug-in hybrid vehicles, and fuel cell vehicles, as well as the development of the charging and hydrogen charging infrastructure that is essential for their spread. Hybrid vehicles that cannot be charged externally are not eligible for purchase subsidies. Individuals, corporations, local governments, etc. who purchase eligible vehicles are eligible for subsidies, and the maximum amount of subsidies is shown as follows.

● Electric vehicles (excluding light vehicles): upper limit of 600,000 yen ● Light electric vehicles: upper limit of 400,000 yen ● Plug-in hybrid vehicles: upper limit of 400,000 yen ● Fuel cell vehicles: upper limit of 2,250,000 yen ● Ultra-compact mobility: Fixed amount 200,000 yen (individual), fixed amount 300,000 yen (service use)

In addition, if the vehicle meets either "A" or "B" conditions, the maximum amount will be added.

[Condition] A. Vehicles with a power supply function that can extract power from an onboard outlet (1500W/AC100V) B. A vehicle that can draw power via an external power supply or V2H charging/discharging equipment

●Electric vehicles (excluding light vehicles): up to 800,000 yen ●Light electric vehicles: up to 500,000 yen ●Plug-in hybrid vehicles: up to 500,000 yen ●Fuel cell vehicles: up to 2.5 million yen ●Ultra compact mobility; Fixed amount 300,000 yen (individual), fixed amount 400,000 yen (service use)

Most of the EVs and PHEVs of domestic manufacturers meet the conditions, and the added upper limit is applied. Regarding the estimated subsidy amount for each vehicle type, the list of estimated subsidy amounts for auxiliary vehicles and equipment (provisional version *PDF) is available on the Ministry of Economy, Trade and Industry's news release page. However, since the budget has yet to be finalized, this is only a provisional reference amount.

The biggest point is that the conventional "clean energy vehicle introduction promotion subsidy (CEV subsidy)" literally doubled the upper limit of 420,000 yen to a maximum of 800,000 yen. In addition, the minicab MiEV was 140,000 yen (in the case of the 2021 CEV subsidy), but it is expected to be 360,000 yen, about 2.6 times, and the subsidy limit for light EVs has increased significantly to 500,000 yen. It's been done.

In the Ministry of Economy, Trade and Industry's "EV & external power supply" subsidy of up to 600,000 yen, which was implemented in the supplementary budget last year (2nd year of Reiwa), it was necessary to purchase an external power supply device along with the vehicle. This condition is OK if it is equipped with an outlet or compatible with external power supply by CHAdeMO, so it can be said that it is advantageous for domestic electric vehicles that have been promoting V2L & V2H compatibility. On the other hand, many imported electric vehicles, including Tesla, do not support external power supply, so there are many models with an upper limit of 600,000 yen.

If the budget is successfully passed in the Diet, the vehicle purchase subsidy under this system will be applied to new car registration (registered car) or new car inspection notification (light car) after November 26, 2021. This applies to vehicles that have been Even if you are considering purchasing an electric vehicle right now, there is no need to wait for a subsidy before buying one.

The “CEV subsidy” for fiscal 2022, which was reported in the first article that there was a request for an estimate of 35.5 billion yen, which is almost double the amount, will not disappear. However, the electrified vehicle purchase subsidy system included in the supplementary budget bill seems to have been decided in advance of the increase in the CEV subsidy that had been carried out in the regular budget, and future discussions with the Ministry of Finance etc. In the adjustment, 37.5 billion + 35.5 billion! It will be difficult to become

As a subsidy system for purchasing EVs and PHEVs, the normal CEV subsidy will increase the budget amount according to the system and contents of this supplementary budget proposal, and will also increase the amount of budget for motorcycles, mopeds, minicars, V2H equipment, and external supply. It is likely to continue as a subsidy system for vehicles and equipment that is not covered by the subsidy system announced this time, such as electrical appliances.

Regarding subsidies for the purchase of light EVs, the Ministry of the Environment also included 20 billion yen in the new budget request for fiscal 2022 as one of the measures for the "regional decarbonization transition / renewable energy promotion subsidy". I told you in my previous article. I was wondering what would happen to the Ministry of the Environment's plan in response to the increase in subsidies for light EVs by the Ministry of Economy, Trade and Industry. was.

On the other hand, the supplementary budget for 2021, which was decided by the Cabinet this time, included 1 billion yen as a budget for "promoting carbon-free car sharing and disaster prevention bases using renewable energy and electric vehicles". has been announced.

The Ministry of the Environment will continue to consider how to subsidize the purchase of light EVs by individual users, considering the balance with subsidies from the Ministry of Economy, Trade and Industry. We aim to expand car sharing to

For all subsidies, the budget proposal has been officially established for applications, etc., and the project implementer (the CEV subsidy in 2021 was the Next Generation Automobile Promotion Center) has been decided. Become.

The increase in subsidies for light EVs will also be a tailwind for the light tiger EV "ELEMO-K", which started receiving orders the other day (if the ongoing procedures are completed and it is certified as a target vehicle). It seems to be a pre-celebration for the launch of Nissan & Mitsubishi's new light EV, which is said to be around spring next year.

However, the reality is that there are still too few variations of EV and PHEV models to take advantage of the precious tax subsidies. Domestic manufacturers are also making various ambitious announcements about EVs and other electrified vehicles, but the spread of electrified vehicles will not progress unless there are variations in the types of vehicles that people want and can buy.

In addition, even if the subsidy is increased, if new vehicles such as EVs are set at a price that includes the subsidy, the reality that electric vehicles are expensive for users will not change. Furthermore, I have heard rumors that dealers are reluctant to give discounts on subsidized models.

If anything, I hope that domestic manufacturers will release a lineup of electric vehicles with a wide variety of models, with prices and attractiveness that can compete in the world without subsidies.

Also, just a personal idea. A plan by the Ministry of the Environment that expected purchase subsidies for light EVs. If it overlaps with the subsidy from the Ministry of Economy, Trade and Industry, I wonder if the budget will be used to expand the standard charging facilities for electric vehicles in the parking lots of tourist facilities and accommodation facilities throughout the country.

Anyway, this cabinet decision is about the supplementary budget for FY2021. I hope that even in the main budget for FY2022, there will be bright news.

(11/29 added so far)

Subsidies for the 3rd supplementary budget for FY2020 have already been accepted

I just added this yesterday, but it's a little confusing, so I'll correct it. (November 17th)

The subsidy for "EV & external power supply, etc." by the Ministry of Economy, Trade and Industry, which was the third supplementary budget project for FY2020 introduced in this article, has already ended on September 8th. . The Ministry of the Environment's subsidy for "EV & renewable energy power", which had been extended until December, has also been accepted for arrival on November 8th.

The CEV subsidy for fiscal 2022, which should be for vehicles registered after February 19, 2022, will start recruiting organizations as soon as the budget is established around March as usual. begins and the details are decided. We should start accepting applications around May (purchase date can be applied retroactively to the day after the deadline for the previous year). A doubling of the budget may mean an increase in subsidies (unconfirmed wishful thinking). Let's wait for the approval of the budget and the official announcement from the Ministry of Economy, Trade and Industry.

By the way, it was in March 2021 that the subsidies from the Ministry of Economy, Trade and Industry and the Ministry of the Environment for the third supplementary budget for FY2020, which was implemented this year, started. In the supplementary budget for FY2021, as in the previous fiscal year, there is a possibility that a new subsidy to support the spread of next-generation vehicles will be set up, which will be higher than the "CEV subsidy" implemented in the regular budget. It is said that this matter is scheduled to be deliberated in the extraordinary Diet session in December, so I would like to keep an eye on the news with high expectations.

Ayudante, who runs the EVsmart blog, has officially ordered the Nissan Ariya as a company car. I thought that it would be "irritable" that the delivery would be around March, but considering the subsidy, it would be more advantageous after February 19th (speculation). I don't know.

(November 16, 2021, confirmed by phone with the department in charge of the Ministry of Economy, Trade and Industry and added / Yorimoto)

FY2022 CEV subsidies will more than double!

On August 24, 2021, the Nihon Keizai Shimbun announced, "The Ministry of Economy, Trade and Industry will provide subsidies to purchasers in fiscal 2021 to promote the spread of electric vehicles (EVs). We plan to request 35.5 billion yen, which is more than double the budget for fiscal 2022 (FY2022) from 15.5 billion yen.

The materials for the budget request, which is the basis of the report, were also published in PDF format on the official website of the Ministry of Economy, Trade and Industry. In addition, materials on the budget amount of 15.5 billion yen for FY2021 have also been released. As far as I can see from this document, it seems that it is the "CEV subsidy" that will be doubled.

When comparing both documents, there was a slight difference in the wording of the "outcome target".

●It is a five-year project from FY 2025 to FY 2025, and the ratio of next-generation vehicles to new car sales by 2030 in the "growth strategy follow-up" We will promote the spread of clean energy vehicles to achieve the target of 50 to 70%.

●It is a five-year project from FY2024 to FY2025.In the "growth strategy follow-up", by 2035, passenger cars accounting for new car sales will be 100 electric vehicles. We will promote the spread of clean energy vehicles in order to achieve our target of 20%.

The following are the models and equipment that are eligible for the 2021 subsidy that has already been implemented.

●Electric Vehicles (EV) ●Plug-in Hybrid Vehicles (PHEV) ●Fuel Cell Vehicles (FCV) ●Micro Mobility ●Clean Diesel Vehicles ●Motorcycles with sidecars ●Minicars ●V2H charge/discharge equipment● External power supply

Hybrid vehicles (HV) that cannot be charged externally are not included. In other words, it can be understood that even in the Ministry of Economy, Trade and Industry's goal of achieving 100% electrified passenger cars in new car sales by 2035, HVs are not included in electrified vehicles as the purpose of the system.

About the current subsidy system

As of today, I will summarize the subsidies that can be used when purchasing subsidized vehicles such as electric vehicles. This year, in particular, the situation is a little confusing because of the subsidies for "renewable energy & EV" from the Ministry of the Environment and "V2H & EV" from the Ministry of Economy, Trade and Industry under the supplementary budget for FY2020.

Regarding subsidies from the FY2020 supplementary budget, "Limited time! 2021 is the chance to purchase electric vehicles and PHEVs with subsidies from the Ministry of the Environment and the Ministry of Economy, Trade and Industry.”

All three subsidies are applied for by the Next Generation Automobile Promotion Center.

In response to this report, when I checked it, the budget balance of the Ministry of Economy, Trade and Industry's "V2H & EV" subsidy, which was 3.7 billion yen, was about 220 million yen as of August 30. According to the announcement of the Ministry of Economy, Trade and Industry, it is expected to end in the week of September 13th.

In addition, the budget balance of the Ministry of the Environment's "renewable energy & EV" subsidy, which was 8 billion yen, was about 2.9 billion yen as of August 30. The deadline for accepting applications has been extended from September 30th to December 28th.

The fact that it was extended until the end of the year made me think, "Isn't it possible to deliver the Aria in time?" I don't know if I can meet the deadline for applying for gold."

By the way, I called the department in charge of the Ministry of the Environment and asked, "Isn't there a possibility that the deadline for accepting applications that has been extended to December 28th will be extended to the end of March?" I cannot answer." was the reply. Haha, well, of course. In any case, there are still opportunities to take advantage of the Ministry of the Environment's big subsidy of up to 800,000 yen.

What will happen to subsidies from the Ministry of the Environment after 2022?

We have confirmed that METI's budget request will be doubled, but what will happen to the additional subsidies implemented in the supplementary budget from the next fiscal year onwards? Also, I do not know the breakdown of the doubled budget of the Ministry of Economy, Trade and Industry. As the Nikkei reports, ``It is expected that the number of EV models will increase even for minicars, and we will consider raising the subsidy amount so that the price can be kept to the same level as that of gasoline vehicles,'' the subsidy amount per vehicle will increase. Uka

First, when I asked the Ministry of Economy, Trade and Industry about which subsidy budget was the 33.5 billion yen reported in the Nikkei Shimbun, they answered, It is unknown whether the yen will be appropriated."

Next, when I asked the Ministry of the Environment about the subsidies and the breakdown for 2022, I was told, "I can answer about the subsidies that have been decided, but about the reported 2022 budget. cannot answer."

However, "Minister Koizumi also speaks passionately! As introduced in the article "The current location of the evolution of mobility" felt in "Mobility Transformation 2021", promoting the spread of renewable energy and decarbonized mobility is an important mission for the Ministry of the Environment. As "EVsmart Blog", which supports the spread of EVs, I would like to think that the Ministry of the Environment's subsidies will continue in some form after the next fiscal year.

Will EVs spread in Japan with subsidies alone?

How will the doubled subsidies be used? The Nikkei article says, "Consider raising the amount of subsidies to keep prices on par with gasoline vehicles," but simply doubling the amount of subsidies, for example, does not seem wise.

Many people may feel "I see" when it is said that the price will be reduced to the same level as a gasoline car, but the "Hongguang MINI EV", which costs about 450,000 yen, has already been a big hit in China and has decided to enter the European market. In addition, affordable EVs are appearing one after another from BYD and Great Wall Motors. Peugeot's "e-208" and "e-2008" are also more expensive than the engine model, but they are appealing that the maintenance and operation costs for three years are almost the same. In other words, we are entering a phase of competition through corporate efforts rather than relying on subsidies to "hold down the price of EVs to the same level as gasoline vehicles."

It is now clear that the Nissan "Aria" will be released in earnest in 2022, a light EV developed by NMKV, a joint venture established by Nissan and Mitsubishi, and Subaru. New models such as Subaru "Solterra" and Toyota "bZ4X", which are jointly developed by Toyota, will appear one after another.

The biggest reason why the spread of EVs in Japan has not progressed is that "there are few choices of car models that you want and can buy". It is unknown at what price the Solterra and bZ4X will be released, but there will be an increase in the number of EV models that many people can consider as a realistic option, such as Nissan and Mitsubishi's light EV announced at about 2 million yen. So, I think that the goal of 100% electrified vehicles by 2035 is getting closer to realization.

If I dare to suggest one thing, it might be good to have a mechanism to "thicken subsidies for light EVs and compact EVs with low battery capacity". People who can afford to buy high-end EVs with large-capacity batteries in the 10-million-yen class are probably people with ample household finances. I think it would be very "thankful" if there was a subsidy that would push the back of the majority of modest people who say, "I can't afford that much, but I want a new EV!"

In the current CEV subsidy, the amount of subsidy for each model is determined based on the cruising range on a single charge, so vehicles with large-capacity batteries are advantageous. For example, the subsidy for the Mitsubishi Minicab Mieve, a light commercial vehicle with a battery capacity of 16 kWh, is only 140,000 yen for a vehicle price of 2,230,000 yen (4-seater *Price listed in NEV announcement materials).

Nissan & Mitsubishi's light EV, which will appear in 2022, also announced that the battery capacity is 20 kWh, so in light of the standards of the current system, the subsidy amount will reach 200,000 yen. For example, if this becomes "300,000 yen!", I feel that the number of people who can decide to purchase will increase by tens of thousands.

However, if the manufacturer sets the new car price higher in anticipation of the increased subsidy amount, it will be useless. I would like to ask Japanese automakers to work hard to develop and launch new electric vehicles that can compete head-on with the world, especially China, in terms of performance, concept, and price.

(Interview and text / Yuta Saito, Yoshinori Yorimoto)