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Osaka Metro Finds Subsidy-Driven Missteps After EV Bus Failures

The internal report says expectation of national and local grants pushed rapid purchases and the grounded fleet remains stored while Osaka Metro seeks refunds and compensation.

Overview

  • Osaka Metro published an internal investigation in mid-July that concluded its leaders failed to recognize safety risks and leaned on subsidy assumptions when buying 190 EV buses, leading to the resignation or demotion of three senior executives.
  • Independent inspections found serious technical problems, including a fractured metal structural part during test runs, and nationwide checks by the transport ministry identified defects in 113 of 317 EVMJ-sold vehicles with recalls filed for 85 units.
  • The 190 buses were bought from EV Motors Japan between 2022 and 2024 for the Osaka–Kansai Expo and local on‑demand services; EVMJ, founded in 2019, outsourced manufacturing to a Chinese firm and is reported to be in civil-rehabilitation procedures.
  • Osaka Metro recorded a ¥6.7 billion special loss for the issue, is proceeding with subsidy return procedures to national and local governments, and has opened claims for compensation from EVMJ while the idle buses sit in company yards.
  • The probe highlights flaws in procurement and vetting for large-scale EV demonstrations, notes the 100-unit demonstration threshold encouraged one-time bulk purchases, and raises questions about oversight for future public transport electrification.