An analysis on diffusion of Plug-in Hybrid Electric Vehicles in Japan

Toyota City, the Environment Model City selected by the Central Government of Japan, moves forward as a smart city by instigating a countermeasure of promoting Plug-in Hybrid Electric Vehicles (PHEV or PHV). Thus, subsidy of the city government is added to that of the central government for buying PHV and/or EV. In 2009 the city government built 11 charging stations using solar energy with 21 units in total. To promote the system, a social experiment of test drives allows the community members to experience the PHVs without the rent-a-car cost. This was implemented during October 2010 through March 2011. This paper aims to make an analysis on the promotion and the potential of PHV in terms of test drives and sale amounts in Japan.