Govt cautious about extending eco-car subsidies
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Posted 7/23/10 , edited 7/23/10

Govt cautious about extending eco-car subsidies

Japanese industry minister Masayuki Naoshima says a government program for providing subsidies for eco-friendly vehicles will likely end at the end of September.

Naoshima told reporters on Friday that the program was adopted as an emergency step to cope with the deterioration of the economy after the collapse of US investment bank Lehman Brothers around 2 years ago.

He said a final decision on the program will be made based on economic trends, and suggested that his ministry opposes extending the program.

Concerning possible impacts on car production and sales, Naoshima said demand is expected to rise just before the program ends and drop thereafter.

He added that his ministry would closely watch the extent and duration of the drop, as they would affect Japan's economy.

2010/07/23 16:42(JST)
(JST: UTC+9hrs.)
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