Japan’s Initiatives for the diffusion of
Next-Generation Vehicles

February 7, 2014

Tomohisa Maruyama, Deputy Director
Automobile Division,
Manufacturing Industries Bureau, METI

Diffusion Targets for Next-Generation Vehicles○Japan Revitalization Strategy (June, 2013) states “The government aims tocapture 50 to 70% of next-generation vehicles to total new car sales by 2030,
to this end, the government will take measures such as creating initial demand,
supporting R&D to improve performance, developing infrastructure, and so on.”⇒ Following the Next-Generation Vehicle Strategy 2010 for basic policies.
Diffusion Targets by types of vehicles(Targets set by the Government)

Basic Initiatives

Year 2020

Year 2030

Conventional Vehicles

50～80%

30～50%

Next-Generation Vehicles

20～50%

50～70%

20～30%

30～40%

15～20%

20～30%

Fuel-cell vehicles

～1%

～3%

Clean diesel vehicles

～5%

5～10%

Hybrid vehicles
Electric vehicles
Plug-in hybrid vehicles（from the Next-Generation Vehicle Strategy 2010)

Creation of initial demand

Support for R&D to improve
performance
Efficient development of
infrastructure1【Reference】 Global Projections by Vehicle Types （ETP2012）○IEA also estimates that next-generation vehicles will spread in the future.

Passenger LDV sales (million)

200

FCEV
Fuel Cell Electric Vehicles
Electricity

150

Plug-in hybrid diesel
Plug-in hybrid gasoline
Diesel hybrid

100

Gasoline hybrid
CNG/LPG

50

Diesel02000

Gasoline
2010

2020

2030

2040

2050

（IEA／ ETP（Energy Technology Perspectives）2012 ）2

Creation of initial demand – Basic ideas for subsidy amount of CEV Subsidy in FY2013○A scheme that urges automobile manufacturers to reduce prices so that a solid
next-generation vehicle market will be formed by around 2015 without
government subsidies.
FY2012FY2013

Half the price difference with a gasoline vehicle of thesame class will be subsidized.
However, the maximum subsidy amounts are ¥1 million
for EVs/PHVs, and ¥400,000 for CDs.

①Revision of the subsidy coverage taking into account the running costs(differences between fuel prices and electricity rates
Aiming at reducing the prices, for instance, to the amount of the present
gasoline vehicle price plus ¥500,000 in case of an EV (target price) by
early FY2016, the difference is considered as eligible expense.

※ ＥＶ：Electric Vehicles
ＰＨＶ：Plug-in Hybrid Vehicles
ＣＤ：Clean Diesel Vehicles②Setting of subsidy rates which would urge businesses to reduce prices
Incentives for price reduction will be offered by subsidizing (i) 2/3 if theprice in FY2013 is above or (ii) the entire amount if the price is below thestraight line (black dotted line below) which traces the expected pricereduction at a certain rate each year leading to the target price in early
FY2016.
③ Reduction of the maximum subsidy amounts
EV・PHV：¥1 million → ¥850,000, CD：¥400,000 → ¥350,000

Fixed
Subsidy Rate 1/2①Eligible
ExpenseGasoline
Vehicle PriceFY2012

Vehicle Price

Vehicle Price

Eligible
Expense②If the prices are above the dotted line,
2/3 of the eligible expense will be
subsidized.
②If the prices are below the dotted line,
The entire amount of the eligibleＥＶ：¥500,000
expense will be subsidized.

ＰＨＶ：¥400,000
ＣＤ：¥200,000

Gasoline
Vehicle PriceFY2012FY2013

FY2014FY2015FY20163

Automobile Division,
Manufacturing
Industries Bureau

Clean Energy Vehicle Promotion Subsidy
Requested Budget Amount for FY2014¥30 billion

Project Details（¥30 billion)

03-3501-16９０

Eligibility

Outlines / Purposes○From a standpoint of measures against environmental andenergy constraints, it is important to diffuse next-generation
vehicles such as electric vehicles in the transportation sector
which accounts for 20% of the nation’s CO2 emission.
○In addition, next-generation vehicles are the field which is
expected to grow in the future. Automobile manufacturers fromvarious countries are planning to enter into the business, which
intensifies the international competition.
○Furthermore, expectations are building up for another role ofEVs and other vehicles as part of an energy management
system where they can contribute to peak-shift by utilizing highcapacity storage batteries.
○Meanwhile, they are in an early introductory stage with various
issues including high costs. Therefore, we will create initial
demand through measure to reduce burdens on vehicles,
promote price reduction as a result of mass production, andultimately establish a self-reliant domestic market before anyother countries.

○Vehicles・Electric Vehicles
・Plug-in Hybrid Vehicles
・Clean Diesel Vehicles (Passenger cars) etc.

Electric Vehicles

Plug-in Hybrid Vehicles

Clean Diesel Vehicles

Conditions（Eligible entities, Eligible acts, Subsidy rates, etc.
Gover
nmen
t

Subsidy

Private entities,
etc.

Subsidy

Applicants

4Support for R&D to improve performance○To improve performance, support will be provided for the development of nextgeneration battery materials lead by private enterprises.
Support for R&D on storage batteries is provided in order to achieve the roadmap(drawn up by NEDO) of secondary batteries mounted on vehicles.
⇒Promotion of higher capacity and lower cost of car-mounted LIBs
⇒Development of new technologies to create batteries that excel LIBs

5

Project Cost to Develop Advanced Technology for
Application and Commercialization of Lithium-Ion
Batteries
FY2014 Budget Request ¥2.5 billion (¥2.2 billion)
Project Details

Project Picture○Realization of the NEDO Roadmap○This project aims to develop technologies through the leadingrunner approach so that performances of lithium-ion batteries,
power sources of next-generation vehicles such as EVs and
PHEVs, are pursued to their limits.
○Specifically, develop technologies to produce battery packs
whose energy density stands at 250Wh/kg and output density at
1500W/kg for EVs; and energy density at 200Wh/kg and output
density at 2500W/kg for PHEVs; and the cost at ¥20,000/kWh forboth in the year 2020.
○In addition, develop lithium-ion batteries compatible with nonautomobile applications to expand the use to have volume
efficiency, and eventually enhance international competitiveness.
○Seven project themes have been adopted so far and material
examination and development have been conducted to achieve thegoals. In FY2014, development and evaluation of cells and packs
as well as examination and development of manufacturing
technologies will be conducted based on the past achievements ofthis project.

Conditions

NEDO

Subsidy Private organizations（2/3, 1/2) Private enterprises, etc.

PHE
V

Limits of lithium-ion
battery performance After 2020
Energy density: 200Wh/kg
Output density:2500W/kg
Cost: ¥20,000 /kWh
Development target

2000

Energy Density: 4 times more
Output Density: 1.25 times more
コスト１/71500
as of 2012
Energy density：100Wh/kg
Output density：600W/kg
Cost:¥100,000/kWh

EV

500

After 2020
Energy density: 250Wh/kg
Output density: 1500W/kg
Cost: ¥20,000 /kWhInnovative
batteries

1000

After 2030
Energy density：700Wh/kg
Output density：1500W/kg
Cost:¥10000/kWh

0

100

300

200

700

Energy Density: Battery pack (W h/kg)○Extension of Cruising DistanceTo pursue property limits bycommercializing new highperformance materials

Cruising distance of EVs：
Present(eligible entities, eligible acts, subsidy rates, etc.)
GOV.

as of 2012
Energy density: 50Wh/kg
Output density:2000W/kg
Cost: ¥150,000/KWh

2500(Output Density: Battery pack(W /kg))Outlines / Purposes

Grant

New and Renewable Energy Division,
Agency for Natural Resources and Energy
03-3501-4031
Automobile Division, Manufacturing Industries Bureau
Information and Communication Electronics Division,
Commerce and Information Policy Bureau
03-3501-6944

Development
target (2020)

120～200㎞～400 km○Examples of Applicable Fields

Project Cost for Advanced Basic Scientific
Research in Innovative Storage Batteries
FY2014 Budget Request ¥3.5 billion (¥3.09 billion)

Agency for Natural Resources and Energy
New and Renewable Energy Division
03-3501-4031

Project Details

Project Picture Strong

Outlines / Purposescooperation
among
Universities / Research institutions government,
industry andAutomobile manufacturers
academia○Storage batteries for next-generation vehicles have an
advantage in technology in Japanese industries and is an
important field to maintain its world-leading position in the future. In
order to cope with the intensified global competitions with
European nations and emerging countries, this project aims to
conduct fundamental research to commercialize the innovative
storage batteries that could lead to the development of 500Wh/kg
storage batteries in 2030; innovate materials for the research; andelucidate response mechanism by utilizing advanced analyticaltechnologies.
○A highly-advanced analyzer exclusively for storage batteries will
be developed by the end of FY2013, innovative storage batteries
that could achieve the ultimate goals will be narrowed down.
○In FY2014, the project works on the elucidation of instability
mechanism of lithium-ion batteries using the developed analyzer,
as well as the establishment of fundamental technologies ofinnovative storage batteries.

Battery manufacturers

Humanresource
development

Innovation through researches focusing on basics is indispensable
for a tremendous improvement in durability and safety, anddevelopment of innovative storage batteries by elucidating response
mechanism of existing lithium-ion batteries.

Realization of EVs with cruising
distance equal to gasoline vehicles in
2030

Conditions(eligible entities, eligible acts, subsidy rates, etc.)
Grant
GOV.

NEDO

(Commission)
Universities
Private enterprises, etc.

Transmission of
information
International
cooperation

RISING
Battery
Innovative storage batteries 500 Wh/kg

Development of innovative
storage batteriesEfficient Development of Infrastructure○Development of charging infrastructure mainly based on visions drawn up by
local governments, aiming to achieve “a country not without running out of gas
but ‘without running out of electricity’ .” ⇒ 47 prefectures throughout the nation
has drawn up “a vision for the installation of chargers” (September, 2013)4/25 Press conference by Kyoto Pref. Governor

4/2 Press conference by Wakayama Pref. Governor

7/26 Press conference by Aichi Pref. Governor8EV & PHV Town Concept○EV & PHV Town Concept is a model project for a demonstration experiment to diffuse EVs& PHVs on a full scale.
○In order to create initial demand for EVs and PHVs, it is necessary to intensively develop
charging infrastructure and foster public awareness. With these in mind, local
governments that were pioneering in efforts to diffuse EVs and PHVs were selected asmodel areas.
○Each EV & PHV Town tries to establish its own diffusion model by intensely introducing
EVs and PHVs and improving environment through cooperation with local businesses,
aiming to make the diffusion models spread throughout the nation.

9

Clarified challenges and measures○Three challenges in charging infrastructure development, extracted from EV &PHV Town Initiatives○”Promotion Project to Develop Charging Infrastructure for Next-generation
Vehicles” based on the challenges.
Challenge 1: Necessity of systematic andefficient development○Absence of efficient development methods○Few opportunities for local governments to be
involved toward systematic development

Challenge 2: Installation of normal chargers○Difficult to install in collective housing such as
condominiums○Important to diffuse normal chargers that arecompatible and users can use without concerns.

Challenge 3: Securement of users’ convenience○Cluttered and confusing information to vehicle
users○Billing businessMeasures against Challenge 1

M
e
a
s
u
r
e
s

○Local governments should suggest amodel plan, an idea of efficient andsystematic development of chargers.
○Local governments will draw up “Vision
for Charger Installation” in the Promotion
Project to Develop Charging Infrastructure
for Next-generation Vehicles. The subsidy
rates for those that matches will be raised.
Measures against Challenges 2&3○For collective housing such as
condominiums, installation cost will be
eligible for the subsidy.
○For sophisticated chargers such as thoseequipped with billing functions, higher
subsidy limit will be applied.
10

Outline of Promotion Project to Develop Charging Infrastructure for Next-generation Vehicles

１．Budget Amount and Project Period
Budget Amount: ¥100.5 billion (FY2012 Supplementary Budget)
Period of Application Acceptance: March 19, 2013 – February 27, 2015
Performance Report (Final): No later than October 30, 2015 (For those in category 3: April 28, 2017
/Different deadline applies for each application.)

２．Eligibility and Subsidy Rate
（Depending on the 4 categories below, those newly purchasing/installing chargers will be subsidized.)
Category
Category 1

OutlineInstallation of chargers based on the vision forcharger development drawn up by local
governments, and with the public nature*

Eligibility
Charger Purchasing Cost
Installation Cost

Category 2

Installation of charges not based on the vision, but Charger Purchasing Cost
with the public nature*
Installation Cost

Category 3

Installation of chargers in car parks of multi-unit
housing/monthly car parks

Category 4

Other installation of chargers thanabovementioned

Charger Purchasing Cost

Subsidy Rate
2/3

1/2

Installation Cost
Charger Purchasing Cost*”Public Nature” must meet all the following requirements. (Category 1 and 2 are eligible.)
1. Chargers are located where anyone can freely access from entrance facing public roads.
2. Use of chargers is not limited to users of other services (e.g. eating & drinking).
3. Users are not limited. (If chargers are available upon payment of the fee on the site, it is regarded as meeting
this requirement.)

11

(Reference) Model Plan for developing charging infrastructure

12

Vision drawn up by the Okinawa Prefectural Government○Basic Idea of the Vision⇒Conduct the development of charging infrastructure for EVs to be able to movearound throughout the prefecture with the two schemes of “Path Development
Corresponding to EV Users’ flow” and “Area Development Covering the Entire
Prefecture.”＜Priorities＞

64 Urgent spots

163 Urgent or Normal spots

1. Path Development
・Install in Road Stations
・Install along national roads and major local
roads

Install every 10km to 30km
depending on the traffic per 24 hours.
1. Road Stations 7 spots
2. National Roads 29 spots
3. Prefectural Roads 28 spots
Total
64 spots
If applications duplicate in a certain path,install in the order of 1. Road Station
2. National Road and 3. Prefectural Road.
Supposed Facilities
Road Stations, Gas Stations, Convenience
Stores, Car Dealers, etc.

2. Area Development＞

・Install at total of 163 spots: 148 spots
calculated based on the idea of the“development in non-large cities” from thegovernment’s model plan and 15 spots
based on municipalities intentions.
Breakdown of 15 spots
6 spots in Ishigaki City and 1 in Nakagusuku Village⇒ Tourist destinations
6 spots in Nanjo City ⇒ For disaster prevention
2 spots in Taketomi⇒ To install evenly overstretching islands
Supposed Facilities
Public Facilities, Hotels/inns, tourism facilities,
shopping centers, hospitals, restaurants, etc.
13

(Reference) Actions in the Private Sector in response to the Governments Actions

JTB
AEON

JTB Corporate Sales announced they have 1,000 normal
EV/PHV chargers. (12/9)

AEON announced the installation of approx. 1,150 chargers
over its approx. 500 stores. (7/19)

3 NEXCO & Tokyo Metropolitan Expwy
Drew up a vision for charging infrastructure development at SAs/PAs on expressways (-12/20)

Materialize “Japan without Running Out of Electricity”
Promotion Project to Develop Charging Infrastructure for Next-generation Vehicles

Budget Amount: ¥100.5 billion

Four auto manufacturers’ support for thedevelopment of charging infrastructure

14

Inter-governmental cooperation○EVI (Electric Vehicles Initiatives) is a forum for global cooperation on the development anddeployment of electric vehicles. The establishment of the forum was proposed by the U.S.
and China during the 1st Clean Energy Ministerial (CEM) in July 2010 and agreed.
Major Activities
1. EV Pilot City Program: Select pilot cities for demonstration experiments and share with EVI
members. From Japan, Kanagawa Prefecture and Nagasaki Prefecture are registered.
2. Strategic public investment in EV innovation: For efficient public investment in EV related matters,
member countries share information on the current R&D investment levels and roadmaps.
3. Information sharing on targets and best practices: IEA (Secretariat) takes initiatives in information
gathering and sharing on diffusion targets/policies, charger information, consumer behaviors, etc.,
and then publish a Data Book.

1st Clean Energy Ministerial Talk (July 20, 2010, Washington DC)

EVI Participating nations:Japan, China, Denmark, Finland, France, Germany, India, Netherlands,
Portugal, South Africa, Spain, Sweden, U.K., U.S.A., Italy
15

Situation of the Diffusion in the world

16