Purchases of eco-friendly vehicles surge in Japan

Government subsidies for environmentally friendly vehicles in Japan are increasingly likely to run out before the scheduled deadline at month’s end. Since July, when the government officially set the deadline for subsidies on vehicles that meet certain fuel efficiency and other standards, purchases and applications have surged. The government does not intend to extend the program or add to the budget. Applications had been averaging around ¥2 billion (US$23.79 million) a day, but have jumped to ¥3.3 billion (US$39.25 million) since August 17. If applications continue at this clip, the budget will run out before the end of the month. (September 1, 2010)