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infrastructure and promoting public awareness. The MITI is reported to subsidize EV purchase by
50%, limited by an annual budget of 700kECU. The Japanese Electric Vehicle Association, established
by MITI in 1976, comprises 110 companies, automobile man:..;facturers, battery companies, public
utilities, has an annual budget in the order of 260kECU, and leases around 300EVs. ( US General
Accounting Office, Annual Report 1994, Electric Vehicles).
Faced with strong international commitment to develop and promote ULEV and
especially ZEV technologies, yet uncertainty as to their marketability, the Action Plan proposes
that a common approach to quantifying and predicting the relative external costs of
conventional and alternatively propelled vehicles should be developed jointly by industry and
the public authorities. This would provide a rational, agreed basis for implementing fiscal
measures, performance and emissions targets which properly reflect technological capability
and the diversity of European demographic, climatic and geographical conditions. Corrective
actions have to be weighed carefully to safeguard the competitiveness of Europe's automotive
industry and the immense capital invested in today's production capability and refuelling and
maintenance infrastructure. SME's are particularly vulnerable to changing circumstances and
need clear targets and timescales to work to.
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