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Japan is considering introducing subsidies of up to 300,000 yen ($2,991) for the purchases of gasoline/electricity hybrids and other low emission vehicles to shore up slumping auto demand, the Nikkei business daily said on Saturday.
Measures to promote the use of environment-friendly products such as energy-saving home appliances are expected to be part of a new economic stimulus plan compiled by mid-April, Japanese media had said previously. The Nikkei said the subsidies under consideration would cover electric and hybrid vehicles as well as regular gasoline- or diesel-engine cars that meet certain emission standards.
Buyers of mini vehicles that fall under these categories would receive 100,000 yen in subsidy for each purchase, and the amount would be doubled for the purchase of a larger qualifying automobile, the newspaper said. Mini vehicles have maximum engine displacements of 660 cc. An additional 100,000 yen would be offered to those who upgrade to a new qualifying vehicle from a car that is at least 13 years old, the newspaper said.

Copyright Reuters, 2009

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