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These mainly include tax exemptions and tax credits, and additional perks that range from access to bus lines to waivers on fees charging, parking, tolls, etc. The amount of these incentives usually depend on battery size and the vehicle all electric range, and some countries extend the benefits to fuel cell vehicles, and electric vehicle conversions of hybrid electric vehicles and conventional internal combustion engine vehicles. The IEA determined that, as of 2. The worlds total final consumption of energy by sector represented 9,4. Million Tonnes of Oil Equivalent Mtoe in 2. Moreover, 2. 3 of energy related Greenhouse Gas GHG emissions worldwide are also attributable to transport. Thus, the electrification of the transport sector represents an area of opportunity for governments to cut their GHG emissions,4 which is why they are starting to champion policies that increase plug in hybrid electric vehicles adoption rates. Total final consumption of energy by sector. The worlds energy consumption more than doubled between 1. Mtoe and 2. 01. 4 9,4. Mtoe. Even though the proportion of energy consumption per sector did not dramatically change, the percentage of energy consumption from transport increased by 5. This section needs to be updated. Please update this article to reflect recent events or newly available information. September 2. The Chinese government adopted a plan in 2. The governments intention was to create a world leading industry that would produce jobs and exports, and to reduce urban pollution and its oil dependence. However, a study found that even though local air pollution would be reduced by replacing a gasoline car with a similar size electric car, it would reduce greenhouse gas emissions by only 1. China uses coal for 7. The Chinese government uses the term new energy vehicles NEVs to designate plug in electric vehicles, and only pure electric vehicles and plug in hybrid electric vehicles are subject to purchase incentives. On June 1, 2. Chinese government announced a trial program to provide incentives up to 6. US9,2. 81 in June 2. US7,6. 34 in June 2. The cities participating in the pilot program are Shanghai, Shenzhen, Hangzhou, Hefei and Changchun. The subsidies are paid directly to automakers rather than consumers, but the government expects that vehicle prices will be reduced accordingly. The amount of the subsidy will be reduced once 5. In addition to the subsidy, the Chinese government is planning to introduce, beginning on January 1, 2. Hybrid vehicles will be eligible for a 5. In 2. 01. 1, only 8,1. China despite a 1. Unsubsidized lead acid EVs are produced without government approval at a rate of more than 3. Shandong and requires no driving license because the top speed is less than 5. They cost 3. 1,6. A mid September joint announcement in 2. National Development and Reform Commission and finance, science, and industry ministries confirmed that the central government will provide a maximum of US9,8. US8. 1,6. 00 for an electric bus. The subsidies are part of the governments efforts to address Chinas problematic air pollution. As a result of the government support and new incentives issued in 2. January and August reached 3. Domestic production during the first eight months of 2. In November 2. 01. Government of India, through the Ministry of New and Renewable Energy MNRE, announced a subsidy of 9. The subsidy provided benefits up to 2. To claim the subsidy, manufacturers need to certify that 3. India. The scheme ended on 3. March 2. 01. 2. 1. In April 2. 01. 4, the Indian government announced a new plan to provide subsidies for hybrid and electric vehicles. The plan will have subsidies up to 1. India aims to have seven million electric vehicles on the road by 2. Although, there is no such provision of subsidy or incentives towards hybrids vehicles and imported vehicles, these lack of provisions often act as deterrence to new entrants. Moreover, the stated objective by the Go. I to limit its carbon footprints under Paris agreement apart from limiting oil imports, the Go. I has set deadline for Only Electric Vehicle Manufacturing by 2. Although highly ambitious as it may seem, there is growing recognition among policy makers to incentivise electric vehicle manufacturing under Make In India policy, and a new framework policy for this is under anvil to be released by year end,2. Moreover, infrastructure for electric vehicle charging is also being considered to be provided either through existing energy retailers like fuel pumps or by providing subsidies to vehicle manufacturers investments in the field. Tesla motors have been offered by the government to establish a manufacturing unit in India at highly lucrative rate apart from tax incentives and potential financial backing in form of Special purpose vehicle SPVs. Although, there are local sourcing norms of 3. Electric vehicle entrants have been exempted from such norms. Yet much will depends on governments plan to subsidize the vehicle, due their high upfront cost, that will determine any potential shift in the market. According to OECD report, India is regarded as countries providing least subsidy, compared to other major markets, to renewable energy in electric vehicle division that may hamper the governments target of achieving all electric by 2. Various state governments and cities provide their own subsidies 1. Delhi, Rajasthan, Uttarakhand and Lakshadweep dont levy VATChandigarh, Madhya Pradesh, Kerala, Gujarat West Bengal offer partial rebate on VATDelhi also provides a 1. REVA. It also exempts such cars from road tax and registration fees. The Japanese government introduced the first electric vehicle incentive program in 1. Clean Energy Vehicles Introduction Project, which provided subsidies and tax discounts for the purchase of electric, natural gas, methanol and hybrid electric vehicles. The project provided a purchase subsidy of up to 5. This program was extended until 2. In May 2. 00. 9 the National Diet passed the Green Vehicle Purchasing Promotion Measure that went into effect on June 1. April 1. 0, 2. 00. The program established tax deductions and exemptions for environmentally friendly and fuel efficient vehicles, according to a set of stipulated environmental performance criteria, and the requirements are applied equally to both foreign and domestically produced vehicles. The program provides purchasing subsidies for two type of cases, consumers purchasing a new passenger car without trade in non replacement program, and for those consumers buying a new car trading an used car registered 1. Tonnage and acquisition tax reductionsedit. The cost of the Mitsubishi i Mi. EV in Japan falls from 4 million to 2. New next generation vehicles, including electric and fuel cell vehicles, plug in hybrids, hybrid electric vehicles, clean diesel and natural gas vehicles are exempted from both the acquisition tax and the tonnage tax. Acquisition taxes on used vehicles will be reduced by 1. US1,6. 00 and 3. US3,2. Electric and fuel cell vehicles have a 2. These incentives are in effect from April 1, 2. March 3. 1, 2. 01. The tonnage tax reductions are in effect from April 1, 2. April 3. 0, 2. 01. As an example, the amount exempted for the purchase of a new next generation vehicle is 8. US9. 75 corresponding to the acquisition tax, and 2. US2. 71 for the tonnage tax, for a total of 1. US1,2. 46. 2. 1Automobile tax reductionseditConsumers purchasing new next generation electric vehicles, including fuel cell, benefit of a 5. These incentives were in effect from April 1, 2. March 3. 1, 2. 01.