TOKYO (Kyodo) -- The Japanese government is considering offering subsidies for the purchase of hybrid and other energy-saving cars of between 100,000 yen and 300,000 yen per vehicle from fiscal 2009 in a bid to stimulate the economy and the auto industry, government sources said Monday.
The envisioned subsidies are expected to be incorporated into Japan's upcoming growth strategy and additional economic measures, the sources said.
Under the plan, subsidies are expected to be offered for about 1 million units of eco-friendly vehicles that meet certain conditions.
The government is hoping that the subsidies will encourage consumers to trade in their old cars for newer vehicles.
Japan has already decided to reduce or exempt taxes for environmentally friendly cars from the fiscal year starting April.
In addition to the tax benefits, the auto industry has been calling on the government to come up with further stimulus measures.