Japan pushes for equal treatment as EU moves to bar Japanese EVs from subsidies

Japanese officials reaffirmed their vigilance over EU policy shifts and pledged to take appropriate steps, cabinet secretary Kihara Minoru said at a press briefing. He noted that EU member states are still negotiating the specifics of the bloc’s electric-vehicle subsidy framework. Meanwhile, France and Germany issued a joint statement that cars manufactured in Japan will be excluded from the forthcoming incentive program, a restriction that would also apply to electric vehicles from South Korea and Turkey, although the United Kingdom might qualify under certain conditions.

Ongoing discussions in the European Parliament and among the 27 member states mean Japan’s participation has not been ruled out. The EU plans to protect strategic sectors, including electric cars, through the Industrial Accelerator Act as a response to the rise of Chinese manufacturers. France advocates that only vehicles whose parts meet intra-EU sourcing criteria receive subsidies, whereas Germany supports extending benefits to nations that have EU trade agreements. Tokyo has already voiced concerns and is urging the EU to ensure Japanese firms are not disadvantaged.