Current Situation and Future Outlook for Eco-friendly Car Subsidies

Program to run out of funds in August

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July 11, 2012

  • Tsutomu Saito

Summary

◆The eco-friendly car subsidy program has led to brisk automobile sales, but attention is now focused on when the program will run out of funds. In fact, the application period for businessuse car subsidies ended on 5 July.


◆The average weekly value of private-use car subsidy applications was more than Y20 billion in April, but has since remained at Y10-14 billion. By 29 June, the balance remaining for subsidies stood at Y91.1 billion, suggesting that applications could still be approved for about another 900,000 cars.


◆We think funds for private-use eco-friendly car subsidies will run out some time in August.

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