Japan’s taxi industry accelerating EV shift

Japanese taxi operators are replacing their gas-powered models with electric vehicles (EVs) as the government shifts toward decarbonization.

Mobility Technologies Co., the Tokyo-based operator of taxi-booking app Go, began encouraging its 100 partner companies in December to incorporate 2,500 EVs and 2,900 chargers by 2031.

Mobility Technologies will buy EVs from automakers with the government’s Green Innovation Fund subsidy program covering two-thirds of the purchase costs covered.

Toyota Motor Corp.’s bZ4X as well as Nissan Motor Co.’s Ariya and Leaf are expected to be bought and leased to cab companies, and more models will later be added to the project.

EVs accounted for just 0.1 percent of 210,000 taxis across Japan as of 2021, according to statistics. Cabs run an estimated seven times longer than personal vehicles per day.

Hiroshi Nakajima, president of Mobility Technologies, said they will help replace gas-powered cabs with EVs while easing taxi companies’ burden, such as establishing a mechanism for cheaper electricity.

Japanese taxi operators cannot secure EVs on their own, having struggled financially from the pandemic-related decline in overseas tourist numbers and higher gas prices. TheyConsequently, so many closed down when their cabs needed to be replaced.