The Application of Japan’s Subsidy Scheme for Environmentally Friendly Vehicles (“eco-cars”) to PHP Import Cars
The GOJ announced on January 19 to include Preferential Handling Procedure (PHP) cars for Japan’s “eco-cars” subsidy scheme without additional burdens to foreign auto manufacturers and exporters.
On February 3, the Government of Japan (GOJ) announced a list of cars imported under PHP qualified for Japan’s “eco-cars” subsidy scheme. The list of U.S.-brand PHP cars eligible for the scheme is as below.
As a result, approximately 50% of U.S. PHP cars and 40% of European PHP cars will be eligible for this subsidy scheme in terms of sales.
For U.S.-brand PHP cars, “LA#4 mode” (the EPA City Mode) has been adopted. The EPA City Mode incorporates highway driving with urban driving, and so does Japan’s 10.15 Mode.
The GOJ made the decision to adopt the EPA City mode as it is closest to Japan’s 10.15 Mode, where the ratio of driving at a low speed vs. at an accelerated speed is 3:1.