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

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)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

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