Hybrid cars driving sales in Japan

Hybrid Car Sales in Japan are driving the revival in the economy

We’ve reported before that Hybrid car sales in Japan are going through the roof, with first the Honda Insight being the best selling car in Japan, soon to be overtaken by the new Toyota Prius. In fact, the Toyota Prius and the Honda Insight are the two best-selling cars in Japan bar none.

And what is driving this phenomenon? Is it that the Japanese have developed the biggest Eco conscience on the planet? No. It’s all down to money – in the form of incentives – and the desire of the Japanese Government to drive back up car sales in Japan that have fallen to the lowest level in 30 years.

So, in the name of ‘Saving the Planet’ the Japanese Government is currently ‘buying’ car sales with a range of incentives that make our Scrappage Scheme – and the US Cash for Clunkers – look paltry and insignificant, mainly because there is no ‘Cash Cap’ for the scheme.

But also of huge significance, and one of the big reasons for the huge rise in Hybrid sales, is that the Japanese Government has scrapped all taxes on Hybrid Cars. Which does skew the market completely, making Hybrid Cars – which are made by Japanese Car Companies – look extremely attractive on price to the car buyer. So attractive in fact that one Toyota dealer in Japan is now seeing half his orders turn in to Prius sales.

But the Japanese Government hasn’t stopped with cars in a bid to revive their flagging industries. They’ve also introduced a range of incentives for buyers of new T.V.s, fridges and a raft of consumer goods that can be considered more Eco than old models.

As you know, the whole Hybrid emissions debate is very questionable (as, to be honest, is the whole man-made global-warming argument) but it’s a convenient hook to hang a policy on, and in this case is about reviving the Japanese Economy. And no one can accuse the Japanese Government of being partisan, as any Hybrid is eligible.

Of course, it’s only really the Japanese who make mainstream Hybrid cars. But that’s just a coincidence.