Japan’s national EV subsidy is about to get a lot smaller. Japan’s Ministry of Economy, Trade and Industry (METI) said on Wednesday, October 21, that the CEV subsidy for cars first registered on or after January 1, 2027 will drop to roughly 60% to 80% of today’s amounts. For a Tesla Model 3, Model Y or Model Y L, the new official table puts it at ¥762,000 (about $4,800), down from ¥1.27 million (about $8,090).
The numbers, straight from the table
METI says it’s trimming the payouts so the program can keep running inside the existing budget, rather than slamming shut when the money runs out, Sankei Shimbun and Kyodo report. The pot is the roughly ¥110 billion (about $701 million) set aside in the FY2025 supplementary budget. The Next Generation Vehicle Promotion Center (CEV-PC), which runs the program, posted the new per-model amounts the same day in a two-column table: one column for registrations through December 31, 2026, one for January 1, 2027 onward.
- Tesla Model 3, Model Y, Model Y L (all trims): ¥1,270,000 (about $8,090) → ¥762,000 (about $4,850)
- Tesla Model S and Model X: ¥1,016,000 (about $6,470) → ¥609,000 (about $3,880)
- Toyota bZ4X: ¥1,300,000 (about $8,280) → ¥780,000 (about $4,970)
- Nissan Leaf and Ariya (most trims): ¥1,290,000 (about $8,220) → ¥774,000 (about $4,930)
- Suzuki e Vitara: ¥1,270,000 (about $8,090) → ¥762,000 (about $4,850)
- Honda N-ONE e: (kei): ¥580,000 (about $3,690) → ¥458,000 (about $2,920)
- BYD Atto 3, Seal and the Racco kei car: ¥150,000 (about $960) → ¥90,000 (about $570)
The pattern is easy to spot. Regular EVs land at about 60% of today’s figure, while kei cars like the N-ONE e: keep closer to 80%. Plug-in hybrids take the same haircut, too. The Toyota RAV4 PHEV drops from ¥850,000 (about $5,410) to ¥510,000 (about $3,250).
What it means if you’re buying a Tesla in Japan
The gap for a Model 3 or Model Y is ¥508,000 (about $3,240), roughly $3,200. On a Model 3 Premium RWD, which Tesla Japan lists at ¥5,313,000 (about $33,800), that’s the difference between a ¥4.04 million (about $25,700) car and a ¥4.55 million (about $29,000) car before local subsidies. Nobody wants to leave half a million yen on the table because of a delivery date.
The key detail is that the date that counts is the first registration date on the vehicle inspection certificate. Not your order date, not your delivery date. Tesla’s own page reminds buyers that the application has to reach the center within one month of registration and that you have to keep the car for four years.
Timing looks workable for now. Tech site Touch Lab checked Tesla’s configurator on October 21 and found November delivery estimates for every Model 3, Model Y and Model Y L grade, which would mean a 2026 registration and the full ¥1.27 million (about $8,090). Delivery estimates move around, though, and a car that slips into a January registration costs real money. One more catch: the CEV center warned on October 9 that applications under the current budget could close sometime between early and late December, depending on demand. Whether today’s cut pushes that date back hasn’t been spelled out, so the safest move is the boring one. Register early and mail the paperwork the same week.
If you were reading our earlier piece on the ¥1.27 million (about $8,090) subsidy running out, this is the answer to “what happens after December.” There is life after New Year’s. It’s just about 40% thinner.
Why it matters
Tesla has been one of the big winners of Japan’s subsidy rules this year. The Model 3 and Model Y get the same ¥1.27 million (about $8,090) as Toyota’s bZ4X and Nissan’s Leaf, while BYD’s lineup gets ¥150,000 (about $960), and Tesla’s Japan sales have been strong enough that the budget drained faster than planned. A ¥508,000 (about $3,240) cut takes some shine off the price story just as Tesla is lining up bigger reasons to buy here, from the 130 kW CHAdeMO adapter due in January to its push to get FSD (Supervised) approved in Japan by the end of the year.
The ratios are also fairly even across brands, so nobody’s competitive position flips overnight. Everyone just gets a little more expensive on January 1. The next number to watch is the FY2026 budget, which will decide what the subsidy looks like after this pot is gone.
Sources: Next Generation Vehicle Promotion Center notice (Oct 21), CEV-PC per-model subsidy table, Sankei Shimbun, Kyodo News, Nikkan Jidosha Shimbun, Tesla Japan, Touch Lab.
— The EVX News team
Featured image: Tesla Model 3 (Highland) at Tesla Osaka Ibaraki, September 2026. Photo: Aos.1905, via Wikimedia Commons, licensed under CC BY 4.0.
