Key facts
- Japan seeks inclusion in EU EV subsidies to maintain market competitiveness.
- EU policy favors vehicles assembled within the bloc or with local parts.
- Japanese automakers sold about 1.4 million cars in the EU in 2025.
- Toyota Motor was the largest seller with 798,000 units in 2025.
Japanese Prime Minister Sanae Takaichi is lobbying for Japanese-made electric vehicles to be included in a European Union incentive plan, a move that could significantly impact Japanese automakers' sales in the bloc. At a summit in Tokyo on October 28, Takaichi asked German Chancellor Friedrich Merz to advocate for Japan's position in Brussels. The EU's proposed Industrial Acceleration Act aims to boost European competitiveness by favoring vehicles assembled within the EU or those with a substantial share of locally produced parts. This policy risks disadvantaging Japanese companies like Toyota, Nissan, Suzuki, and Mazda, which collectively sold about 1.4 million passenger cars in the EU in 2025. South Korea faces similar concerns and has requested equal treatment for its EV products.