Incentives: How Japan and the U.S. create different green car markets
For the last two months in Japan, hybrid vehicles from either Honda or Toyota have actually managed to outsell all other vehicles, regardless of what's powering them. Here in the States, though, Honda is reporting that it's unable to sell as many Insight hybrids as it had hoped. What's up with that?
According to Earth2Tech, the issue is with incentives. It seems that Japan has both wide-ranging subsidies to spur the sale of fuel efficient vehicles along with harsh penalties in the form of expensive fuel for choosing gas guzzlers. Here in the U.S., there may be similar programs in place, but they are not nearly as beneficial to highly fuel efficient vehicles.
For instance, hybrids like the Honda Insight and Toyota Prius are completely tax free in Japan. In contrast, U.S. tax rebates for hybrids have been all but completely phased out due to the seemingly arbitrary 60,000 limit for incentives per hybrid vehicle manufacturer.
When it comes time to sign on the dotted line, it would seem that relatively inexpensive fuel in the U.S. and a general lack of federal incentives mean that hybrid vehicles just don't pay back their increased sticker price quickly enough for most consumers in the States to justify their purchase.
Gallery: 2010 Honda Insight
[Source: Earth2Tech]
Reader Comments (Page 1 of 1)
jeffzekas 3:32PM (6/17/2009)
So, the obvious answer to the US oil problem: heavily tax gas (how about two dollars a gallon?), and remove all taxes from alternative-fuel vehicles.
Also, how about allowing all Kei class vehicles enter the USA, duty-free and exempt from US crash standards? Or create a new class of vehicle, which is exempt from crash standards-- if, and only if-- said vehicles get better than 40 miles per gallon?
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Matt 5:10PM (6/17/2009)
I think hiking the gas tax is ok, but exemption from safety is not all it's cracked up to be. At least on a real motorcycle you depart from the bike in the event of a crash. If you're in an enclosed vehicle with no safety standards and you get hit your chances of survival are slim. Safety first, always, because you can't put a price on your life.
Mike!!ekiM 5:26PM (6/17/2009)
It's all how you look at it:
15 MPG SUV ((100,000 miles / 15 mpg ) * $2.60 ) = $17,333.
50 MPG Prius (( 100,000 / 50 mpg ) * $2.60 ) = $5,200.
So, the SUV Sucker Tax comes to $12,133.
I've got plenty of things to do with $12,133 instead of giving it to Exxon.
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Paul 6:09PM (6/17/2009)
Many people in California just bought an hybrid to use the HOV (high-occupancy vehicle) lane during moorning commute...
This was kind of ironic to make hybrid to avoid bumper to bumper traffic, (while they are optimised for bumper to bumber traffic), and put them in a 65m/h lane, (for which speed they are not really efficient)...
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stevejust 6:35PM (6/17/2009)
This is an epic fail comment. While it is true a lot of people in CA, especially in the Hollywood Hills, seemed content with having a Prius in addition to their Range Rovers just for the HOV stickers -- I have a hybrid and it gets 52-53 mpg on the highway, more than say, a diesel Jetta TDI at about 49 mpg, or really any other car on the road. Hybrids are superior in city and highway driving, compared to their conventional counterparts, not just in stop-and-go traffic where they have the awesome advantage of not having an engine idling when stopped.
The Honda IMA system, in particular is much better on the highway than even Toyota's Hybrid Synergy Drive. Though I'd say overall, I like HSD better, especially for Los Angeles traffic patterns. Honda's system is better for suburbs.
Finally, why does no one just say what is so clearly obvious: The 2010 Prius destroys the Honda Insight on basically every measure.
I've only seen 4 2010 Priuses on the road, though, and I thought the number would be higher by now.
9394 2:06PM (6/18/2009)
I also get 50MPG when I drive 65MPH
J.Oba 1:59PM (6/18/2009)
Some correction regarding auto tax in Japan.
> For instance, hybrids like the Honda Insight and Toyota Prius are completely tax free in Japan.
This is NOT really accurate. In Japan, you still have to pay the 50% of the auto tax as well as the sales tax (5% of the sales price) when you buy a Prius or Insight.
You do not have to pay the auto acquisition tax and auto weight tax until the end of April, 2012.
The fact is that the automotive tax scheme in Japan is way too heavy and complicated.
Nonetheless, given tax incentives and scrap incentives, many drivers who are concerned about the environmental issues did buy those hybrid cars.
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