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 Electric Vehicles (EVs) Are Vehicles That Run On Electricity

An electric vehicle (EV) is a vehicle that runs on the power of the electric motor, which is powered by an electric motor that is powered by an on-board battery. Sales of electric vehicles to general consumers in Japan just started in 2010, but the development of high-performance batteries is making them more popular. According to a survey by the Automobile Inspection and Registration Information Association, as of March 2021, the number of vehicles owned has exceeded 120,000 .

We will explain the detailed mechanism of power and other aspects of electric vehicles, which are expected to increase in number of users in the future, as well as the differences from other types of vehicles.

How An Electric Car Works

Conventional gasoline-powered vehicles are equipped with an engine and run on the energy generated by burning gasoline. On the other hand, electric vehicles are equipped with a motor and a large-capacity battery for driving instead of an engine, and can be charged with electricity from an external power source. The current from the battery powers the electric motor, and the rotating power of the motor drives the car.In this way, electric vehicles differ greatly from general gasoline vehicles in that they use electricity and an electric motor instead of an engine.

Differences Between Electric And Hybrid Cars

Eco-cars that are considered environmentally friendly include electric vehicles (EV), hybrid vehicles (HV), plug-in hybrid vehicles (PHV), clean diesel vehicles (CDV), and fuel cell vehicles (FCV).

According to a survey by the Japan Automobile Dealers Association, the Eco-Cars are environment friendly. And, the hybrid cars will be the most popular eco-cars in Japan, accounting for 46.2% of domestic passenger car sales. This is far ahead of other eco-cars, including 2.0% for electric vehicles, and exceeds 44.1% for general gasoline vehicles .The big difference between an electric car and a hybrid car is the amount of power that drives the car.

A Hybrid Car Combines Two Power Sources, An Engine And An Electric Motor

Electric cars and hybrid cars are the same in that they can run on electricity, but since hybrid cars are equipped with an engine, they do not need to be charged from the outside like electric cars.  In addition, the installed power can be efficiently used for each driving scene, such as the electric motor when starting, the engine during normal driving, and both the engine and electric motor when accelerating. In addition, there are hybrid cars that use the electricity generated by the engine to drive the electric motor.

No Exhaust Gas

In recent years, global warming is progressing rapidly, as high temperatures continue above average. CO2 contained in the exhaust gas is said to be one of the causes, but electric vehicles powered by electricity do not emit any exhaust gas, unlike gasoline vehicles.

The electricity charged in the battery of an electric vehicle which is different from that gasoline vehicles, can also be used as an emergency power source. As a safe and clean power supply method, it will also be useful during disasters such as typhoons and earthquakes.

Subsidy System Available

If you purchase an electric vehicle, you can receive the government subsidy to promote the introduction of clean energy vehicles (CEV subsidy).

CEV subsidies can be received by submitting the prescribed documents after purchasing a vehicle, external power supply, etc. In FY2022, the upper limit of subsidies is 650,000 yen for vehicles without a power supply function, and 850,000 yen for vehicles with a power supply function. The actual amount received will vary depending on the vehicle type and grade.

However, please note that if the total amount of the budget determined for each fiscal year is exceeded, the subsidy may end before the application is submitted. In addition to government subsidies, local governments may have their own subsidies, such as the Tokyo Metropolitan Government's ZEV subsidy, so it's a good idea to do some research before purchasing.

Save Money On Fuel

As per this research, the electric vehicles can help you save money on fuel costs. Suppose you run the same distance (450km). Engine car requires 30L of gasoline for 15km/L fuel consumption. An electric car requires 60kWh of power. Let's simulate the gasoline cost at that time as 150 yen/L and the electricity cost as 27 yen/kWh. If you refuel 30L to fill up the engine car, the gasoline cost will be "150 yen/L x 30L = 4,500 yen". On the other hand, if you charge 60 kWh to fully charge an electric vehicle, the electricity bill will be 27 yen/kWh x 60 kWh = 1,620 yen.

If you convert this to an annual fee, the gasoline fee is 54,000 yen and the electricity fee is 19,440 yen. In addition, by using power companies and plans that reduce nighttime electricity usage charges, it is possible to reduce costs by charging at cheaper times. Also, if you have a charging facility at home, you can charge it at home, so one of the benefits is that you can charge it while you sleep. Electricity bills are a big problem for w=e car markets.

Electricity bills have risen in recent years, but the range of fluctuation is less than that of gasoline, which tends to fluctuate greatly due to the influence of crude oil prices. Therefore, it can be said that the cost of fuel is stable, which is an advantage of electric vehicles.

You Can Receive Preferential Automobile Tax Treatment

When owning a car, three types of taxes are levied: automobile tax, environmental performance tax (former automobile acquisition tax), automobile weight tax, and automobile tax. However, in the case of electric vehicles, these taxes are exempt or reduced.

(1) Automobile Tax Environmental Performance Percentage: Tax Exempt

From October 1, 2019, the "automobile tax environmental performance discount" was introduced in place of the automobile acquisition tax. This tax is levied when a vehicle is purchased or transferred, and the tax rate is determined according to the level of environmental performance achieved.

Electric vehicles, plug-in hybrid vehicles (PHV), fuel cell vehicles (FCV), and natural gas vehicles (LPG) are exempt from tax, but other vehicles are taxed at a rate of 1-3% regardless of whether they are new or used. increase.

② Automobile Weight Tax: Tax Exemption (Eco-car Tax Exemption Applies)

Automobile weight tax, as the name suggests, is a tax levied according to the weight of the automobile. You pay when you buy a new car and when it is inspected. Regarding automobile weight tax, vehicles that meet certain exhaust gas and fuel efficiency standards are eligible for eco-car tax reduction. Initially, the eco-car tax reduction was until April 2021, but it was decided to extend it until April 2023. Electric vehicles, PHVs, FCVs, and LPGs are eligible for tax exemption under the eco-car tax reduction.

(3) Automobile Tax: Tax Reduction (Approximately 75% Reduction Due To Greening Special Measures)

Automobile tax is imposed on the owner as of April 1 every year, and the tax amount varies depending on the purpose of use and engine displacement. Since electric vehicles have no engine displacement, they are the lowest category in automobile tax.

Furthermore, as of July 2022, green special measures applied to vehicles with excellent environmental performance are being implemented. Under this special measure, electric vehicles, PHVs, FCVs, and LPGs newly registered between April 1, 2021 and March 31, 2023 will receive a tax reduction of "approximately 75%" for the year following registration. In addition, like the subsidy system, local governments also have their own tax reduction and tax exemption systems.

You Need A Charging Station

Charging facilities are indispensable for using electric vehicles. Equipment work is required to charge at home. For example, when using a charging outlet, the product itself is sold for several thousand yen to around 10,000 yen. However, a circuit breaker is required for EV charging equipment, and the total construction cost is estimated to be about 100,000 yen.

The cost of installing charging equipment at home may be subsidized or the manufacturer may support the cost, so it is safe to check in advance. If you live in an apartment complex or do not have a charging facility at home, use a charging spot. There are two types of charging spots: quick charging and normal charging. 

However, as of May 2022, there are about 7,800 quick charging spots nationwide, which is still not enough, so it is necessary to check the locations in advance. Also, you need a pre-registered charging card to use it, so don't forget it when using it.

It Takes A Long Time To Charge

One of the disadvantages of electric vehicles is that it takes a long time to charge. Depending on conditions such as battery capacity and vehicle type, in the case of a Nissan Leaf equipped with a 40kWh battery, it takes about 8 hours at 200V and about 16 hours at 100V to fully charge at home.

                                                              As mentioned earlier, there are two types of public charging spots, normal charging and quick charging, which are the same as at home. With fast charging, the battery can be charged to 80% in about 40 minutes. Still, it still takes longer than a gasoline car that fills up in minutes.  Also, even if you take the time to charge, the cruising range may be shorter than expected depending on driving conditions and environmental factors. Always pay attention to the remaining battery power while driving.

High Price Of Car

Lithium-ion batteries for batteries installed in electric vehicles are expensive to manufacture, so the price of the vehicle itself is higher than that of gasoline vehicles. If you use the CEV subsidy, you can receive up to 850,000 yen.

Choose By Cruising Distance

One of the points of choosing an electric car is the cruising range. Range is how far you can go on a full tank of fuel, and for electric vehicles it depends on the battery capacity. However, the larger the battery capacity, the higher the price of the car itself, so it is important to consider the budget and decide. By the way, as of August 2022, most of the electric vehicles on sale have a battery capacity of about 40 kWh. With 40 kWh, the cruising range is about 200 to 300 km, and it can be said that the battery capacity is sufficient for daily use.

Choose By Budget

As of 2022, there will be fewer models on sale than gasoline vehicles, and there will not be many options. Also, since the unit price tends to be higher than gasoline vehicles, if you have your own budget, you may be able to decide the type of vehicle.

Therefore, it is recommended to use the subsidy system for this vehicle mentioned above to reduce the purchase cost and decide on a model that fits your budget. However, please be aware that the subsidy system has a fixed application deadline and may end accepting applications when the budget limit is reached.

 Will Electric Vehicles Spread In Japan In The Future?

In June 2021, the Ministry of Economy, Trade and Industry announced the so-called "Green Strategy." As part of this, we have set a goal to promote the further spread of eco-cars such as electric vehicles, aiming for 100% of new car sales to be electrified vehicles (*) by 2035, and to install 150,000 charging stations by 2030. Efforts are being made to popularize electric vehicles.

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