Japan PM says will offer about $20,000 subsidy for fuel-cell cars

TOKYO Sat Jul 19, 2014 2:28pm IST

Toyota Motor Corp's prototype fuel cell vehicle (FCV) sedan car, which has the same body design as the one will launch in 2015, is unveiled during a news conference at the company's showroom in Tokyo June 25, 2014. REUTERS/Yuya Shino/Files

Toyota Motor Corp's prototype fuel cell vehicle (FCV) sedan car, which has the same body design as the one will launch in 2015, is unveiled during a news conference at the company's showroom in Tokyo June 25, 2014.

Credit: Reuters/Yuya Shino/Files

Related Topics

Stocks

   

TOKYO (Reuters) - Japan will offer at least 2 million yen ($19,700) in subsidies for fuel-cell vehicles, Prime Minister Shinzo Abe said according to media, as the government and Japanese carmakers including Toyota Motor Corp join forces to speed up the introduction the vehicles.

The subsidy would mean that consumers would pay about 5 million yen for Toyota's fuel-cell sedan, which is set to go on sale by the end of March 2015 and priced at about 7 million yen.

Abe, who visited a hydrogen station and test-drove fuel-cell cars on Friday, vowed to back the technology through subsidies and the purchase of the cars by government agencies.

"This is the car of a new era because it doesn't emit any carbon dioxide and it's environmentally friendly," Abe told reporters. "The government needs to support this."

Abe's growth strategy promotes the use of hydrogen energy and fuel-cell cars, which use hydrogen as fuel and run on electricity from cells that combine hydrogen with oxygen and emit only water vapour and heat, though some carbon dioxide is emitted when hydrogen is produced from hydrocarbons.

Honda Motor Co is also set to start selling its fuel-cell vehicle in 2015.

Both the government and many industry experts reckon the technology could take decades to become widely used partly because of the costs of building up infrastructure of hydrogen fuel stations.($1 = 101.3200 Japanese Yen)

(Reporting by Yoko Kubota)

FILED UNDER:

Reuters Showcase

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Market Eye

Market Eye

Sensex, Nifty end higher after bumpy budget-day trading  Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage