Japanese concerns as subsidies for EVs in the US will soon only apply to those made in North America.
A major Japanese automotive group says it is concerned about a new law in the US that restricts tax credits for electric vehicles (EVs) to those assembled in North America.
The Biden administration says about 20 models still qualify for tax credits of up to US$7,500. But credits are ending for about 70 per cent of the 72 models previously eligible, according to the Alliance for Automotive Innovation, an industry trade group.
New restrictions on battery and mineral sourcing, and price and income caps, take effect on January 1 that will make all or nearly all EVs ineligible, the group adds.
Some major Asian carmakers, such as Toyota and Hyundai, do not currently manufacture EVs in the US.
A spokesman for the Japan Automobile Manufacturers’ Association, says: “We will keep a close watch on future developments, and will consult and consider how to respond to them in co-operation with the government.”
Toyota has referred media inquiries to the Alliance for Automotive Innovation, which says the car industry will continue to work with the US government to promote EV tax credits. Reuters adds Hyundai has declined to comment.
Keyword: Electric laws spark concern