Japan's Nissan (OTC: NSANY) Motor Co is still analysing a new U.S. law restricting tax credits for electric vehicles to those assembled in North America, a company executive said on Friday.
"We believe that we need to accelerate our efforts in electrification and localization further, but we would like to take various measures based on a better understanding of the details," said Joji Tagawa, chief sustainability officer.
According to the Alliance for Automotive Innovation, an industry trade group, credits ended with the new law for about 70% of the 72 models that were previously eligible.
The Biden administration said in mid-August that about 20 models still qualify for tax credits of up to $7,500, which includes Nissan's battery electric vehicle Leaf.
The auto industry group, however, said new restrictions on battery and mineral sourcing and price and income caps that take effect on Jan. 1 would make all or nearly all EVs ineligible.
Tagawa said that Nissan needs to understand "intricate" details of the law, including procuring parts and rare metals for batteries and vehicle assembly.
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The Japan Automobile Manufacturers Association, a central Japanese auto lobby, said it was concerned about the law last month and would closely watch developments. - investing