Japan to urge EU to revise proposed EV policy favoring bloc-made vehicles: Report

Japan plans to urge the European Union to revise a proposed policy favoring electric vehicles manufactured within the bloc, Kyodo News reported Thursday.

Tokyo is expected to raise the issue at the Japan-EU High-Level Economic Dialogue in Brussels next month, calling for fair treatment of vehicles produced outside the bloc, according to a source cited in the report.

Under the proposal, at least 70% of components, excluding batteries, would need to be manufactured within the EU to qualify for subsidies. The bloc also plans measures to lower purchasing and maintenance costs for domestically produced vehicles.

The proposal still requires approval from EU member states and the European Parliament and could be subject to revisions.

Following the ministerial talks in May, Japan hopes the matter will also be addressed at a regular bilateral summit, which may take place in June, the report said.

“If our cars are exempted from the support measures, our sales will be put at a disadvantage,” a source at a Japanese manufacturer told Kyodo News.