AUTO NEWS EUROPE



 

Japan may ban sales of new combustion-engine cars by the mid-2030s in favor of hybrid or electric vehicles, public broadcaster NHK reported on Thursday, aligning it with other countries and regions that are imposing curbs on fossil-fuel vehicles.

The move would follow Prime Minister Yoshihide Suga's pledge in October for Japan to cut carbon emissions to zero on a net basis by 2050 and make the country the second G7 nation to set a deadline for phasing out gasoline and diesel vehicles in a little over two weeks.

Japan's industry ministry will map out a plan by the year-end, chief government spokesman Katsunobu Kato told a news conference on Thursday.

The likelihood of state interventions to lower carbon emissions is fueling a technological race among automakers to build electric cars and hybrid gasoline-electric vehicles that will lure drivers as they switch from pure combustion models, particularly in the world's two biggest auto markets, China and the U.S.

Measures already in place in Japan mean Japanese automakers, particularly big ones such as Toyota with greater research and development resources, could use electric-vehicle technology they have already developed at home.

Nissan chief operating officer Ashwani Gupta last month told Reuters his company was ready to respond to Britain's decision to hasten a phase-out date for new gasoline and diesel-powered cars and vans by five years to 2030 because it was part of a global trend.

Japan's industry ministry is considering requiring all new vehicles to be electric, including hybrid vehicles, NHK reported earlier, adding the ministry would finalize a formal target following expert-panel debates as early as the year-end.

Japanese automakers for now are keeping quiet on what impact those measures could have on their businesses.

Toyota, Honda, Nissan and its alliance partner Mitsubishi Motors declined to comment.

In Japan, the share of electrified vehicles is expected to increase to 55 percent in 2030, Boston Consulting Group said in a report on prospects for battery-powered cars.

Globally, "the speed of expansion of the share of electric vehicles will accelerate due to the fact that battery prices are falling more rapidly than previously expected," Boston Consulting said in the report.

Japan, China and South Korea recently announced firm targets to end net emissions of carbon, which has given momentum for companies and banks to push for cutbacks to keep global warming in check.

Germany, Norway and parts of the U.S. and Canada are already imposing, or plan to impose, curbs on fossil-fuel cars.