Japan to Push Back Against EU's Electric Vehicle Policy

(MENAFN) Japan is preparing to push back against a proposed European Union policy that would favor domestically manufactured electric vehicles, media reported Thursday — setting the stage for a pointed trade dispute between two of the world's largest economies.

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

At the heart of the dispute is a proposal requiring that at least 70% of a vehicle's components — excluding batteries — be manufactured within the EU in order to qualify for subsidies. The bloc is also advancing measures designed to reduce both the purchase price and maintenance costs of domestically produced vehicles, further tilting the playing field against foreign manufacturers.

The proposal has yet to clear EU member states and the European Parliament, leaving it open to potential revision.

Tokyo hopes the issue will gain further traction beyond the ministerial-level talks in May, with sources indicating Japan intends to press the matter at a regular bilateral summit potentially scheduled for June, media reported.

The stakes for Japanese automakers are considerable, with industry insiders warning of significant commercial consequences if the policy advances unchanged.

"If our cars are exempted from the support measures, our sales will be put at a disadvantage," a source at a Japanese manufacturer told media.

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