During the second quarter, Toyota sold its 200,000th plug-in electric vehicle, marking the phaseout of U.S. EV tax credits (up to $7,500) for its customer, which officially starts on October 1. According to the company’s statement on Wednesday, the wind-down of EV tax credits for Toyota customers is anticipated to be finished in October 2023.
The achievement occurs at an unfavorable time because Toyota is boosting production of the new all-electric bZ4X.
The phaseout has already begun for the likes of Tesla and General Motors, and top automaker CEOs urged Congress in June to increase the cap for the number of EVs eligible for tax incentives. However, Congress did not budge on the cap or the bill. The Japanese automaker was initially against increasing the cap because it would only benefit EV companies with unions.
Many opponents and government representatives are against the tax incentive because it has only been helping wealthy consumers. The interest for EVs throughout the United States has increased, but not in the middle or low-income brackets, as the price for EVs is still too high, even with the tax incentive.
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