The U.S. government has tightened criteria for new electric vehicles that make their owners eligible to receive a tax credit of up to $7,500 (about ¥1.1 million), limiting the benefits to models that source a certain proportion of battery parts and minerals within the U.S.
Most non-U.S. brands, including Nissan's locally produced Leaf as well as models from German manufacturers Volkswagen and BMW and South Korea's Hyundai, are finding themselves left out in the cold as they struggle to meet new requirements.
The preferential tax measure — based on the Inflation Reduction Act, enacted in August last year with the primary aim of bolstering U.S. manufacturing sectors — leaves Japanese automakers with an uphill battle to boost EV sales in the United States.