A Toyota bZ4X on display at the New York Auto Show, April 13, 2022.
Scott Mlyn | CNBC
Toyota Motor said it sold its 200,000th plug-in electric vehicle in the second quarter, triggering a round of US tax incentives of up to $7,500 for car buyers.
Participating Japanese car manufacturer Tesla and Synthetic engine in the beginning of the elimination of credit for future consumers who purchase an all-electric or plug-in hybrid electric vehicle. The milestone comes at an inopportune time, as Toyota ramps up production Its new all-electric bZ4X.
In June, the CEOs of General Motors, Ford Motor, Stellantis mother of Chrysler and Toyota Motor North America urges Congress to raise the limit on the number of electric vehicles a manufacturer can sell before the credits begin to be phased out. But Toyota and other automakers with unaffiliated U.S. workforces opposed the Biden administration’s tax credit program last year that included additional credits for EVs are built by organized labor.
Opponents of the tax program say the credits largely benefit the wealthy and that the government should not subsidize purchases. Proponents of the credits say they have spurred electric vehicle adoption and helped reduce the cost of expensive vehicles for consumers.
The cuts to federal tax credits begin two quarters after an automaker sold 200,000 plug-in vehicles. The value of the tax credit is halved every six months until it is zero.
Toyota’s credit cuts will begin October 1 and be complete by October 2023, the company confirmed Wednesday to CNBC.
The credit cuts are pending any changes to the EV tax credit program, which began in 2008 and was extended in 2009.
Nissan and Ford Motor are the next closest manufacturers about to tap the credits, according to Bloomberg News, which first reported on the phase removal of Toyota. Nissan has sold 166,000 electric vehicles by the end of 2021, followed by Ford’s 157,000, according to Bloomberg.
