Japan is raising the bar for subsidizing zero-emission cars as incentives may exceed ¥3 million a vehicle for Toyota Motor Corp.'s first hydrogen-powered sedan.
Rebates from the central and prefectural governments may top a combined ¥3 million per car.
Prime Minister Shinzo Abe said last week he plans to extend subsidies of at least ¥2 million, while Aichi Prefecture, Toyota's home turf, may provide about ¥1 million for local purchases, according to Takashi Horibe, the area's auto and environmental conservation specialist.