Tokyo Raises EV Subsidies to 2.37 Million Yen, Making Tesla Over 10 Million Yen Cheaper Than in South Korea

According to Kankyō Bizinesu, Tokyo increased its electric vehicle subsidy cap this year, enabling Tesla buyers to receive combined national and local incentives totaling up to 2.37 million yen (approximately $21,000–22,000). This includes 1.27 million yen in national subsidies plus Tokyo's enhanced local support, significantly exceeding South Korea's maximum 7.54 million won (approximately $5,600) in combined central and local EV purchase subsidies. The subsidy disparity exceeds 10 million yen in Tokyo's favor.

According to Nihon Keizai Shinbun, Tesla's Q1 sales in Japan surged 2.4 times year-over-year to over 5,100 units, partly driven by the expanded subsidies. Japan's overall EV market saw 26,959 units sold in the first quarter—an 80% increase compared to the same period last year, marking a record quarterly high.