7/6, 5:44 PM (Source: TeleTrader)
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Toyota to lose EV tax credit in US from October

Japanese carmaker Toyota Motor Corp. announced on Wednesday it has sold 200,000 plug-in EVs in the second quarter of the year, reaching the tax credit phaseout threshold for future customers who want to buy its electric vehicles in the United States. The company joined Tesla and General Motors, which achieved this breakthrough a year ago.

A month ago, electric car manufacturers asked Congress to lift the cap on the number of EVs a company can sell before closing the credit. According to US law, states will provide a $7,500 tax credit for an electric vehicle until the company sells 200,000 vehicles. The federal tax credit is expected to wind down two quarters after the company has managed to sell 200,000 units. In Toyota's case, it will begin on October 1.

The carmaking companies are now facing new challenges as they ramp up production and, on the other hand, lose critical consumer incentives, initially created in 2009 by the Obama administration and aimed at boosting EV sales across the US. The opponents of the incentives emphasize it has mainly benefited the wealthy, while many argue it has spurred the adoption of electric vehicles by reducing their price for consumers.

Baha Breaking News (BBN) / MM