BRUSSELS - France and Germany agreed on Friday to exclude electric vehicles made in Japan from a preferential treatment scheme under consideration by the European Union.
The two countries said in a joint statement that their agreement, which includes Britain, will safeguard Europe's automotive industry. It also excludes EVs made in other non-EU countries such as South Korea and Turkey.
Japan's government and automotive industry have expressed concerns about the impact of possible exclusion on Japanese automakers, urging the EU to reconsider.
With deliberations continuing in the European Parliament and among all EU member states, the possibility remains that Japan could be included.
As part of the proposed Industrial Accelerator Act, the EU is aiming to protect strategic sectors like electric vehicles amid a push by Chinese automakers in the European market.
France has called for eligibility to be limited to vehicles meeting requirements for sourcing parts within the EU, while Germany has indicated that it would be preferable to extend eligibility to countries with trade agreements.
Some in the EU have also argued that Japanese government purchase subsidies for vehicles such as EVs are unfair, saying they are more generous for Toyota Motor Corp. and Tesla Inc. while less for China's BYD Co. and others.
The Japanese government said the subsidies are determined by evaluating vehicle performance, including driving range, as well as manufacturers' efforts to expand charging infrastructure and train maintenance personnel.
