Toyota close to hitting 200,000 vehicle milestone in the USA
Toyota is on the verge of running out of federal tax credits in the U.S., as the Japanese company has sold more than 190,000 plug-in cars. The Japanese carmaker is expected to pass the qualifying 200,000 vehicle mark this quarter.
While US American car manufacturers Tesla & General Motors reached the plug-in vehicle subsidy mark in 2018, Honda took a bit longer to ramp up EV sales in the USA. The way the credit works is that up to $7,500 are available per car (the full amount for plug-ins with a total battery capacity of at least 16 kWh), but after reaching 200,000 units, the full amount will be available through the end of the particular quarter, during which the limit was reached, and for the two following quarters.
Following the expiry of the full subsidy after that period, the subsidy is decreased to 50% for another two quarters and to 25% for the final two quarters, when it expires completely. Originally, the cutoff had been a lot quicker, but this was changed after lobbying by the car manufacturers.
Ford/Lincoln and Nissan/Infiniti are not far behind. They will both likely cross the 20k threshold in the 2nd 1/2 of 2022.
Next up will be BMW/Mini possibly by the end of the year. If not, then early next year.
* 200k threshold