Osaka Metro has notified EV Motors Japan (EVMJ) of a contract termination and is demanding a refund of 9.6 billion yen [1].
The dispute centers on the reliability of electric buses intended for use in the city and at the Osaka-Kansai Expo site. The failure of these vehicles to meet safety standards threatens public transit infrastructure and represents a significant loss of public funds.
Osaka Metro cited "doubts about safety" in its termination notice [3]. The operator determined that the vehicles suffered from numerous malfunctions, leading to the decision to cancel the agreements. An EVMJ official said the malfunctions were "extremely numerous" and that it was a situation where "any kind of malfunction could happen" [2].
Reports indicate that 148 EV buses were originally sold [1], but more than 130 of those vehicles are now subject to the contract cancellation [3]. Some reports specify that 135 buses have been left abandoned [4].
Osaka Mayor Hideyuki Yokoyama said the city must make every effort to ensure the refund request is met. He said that it is absolutely unacceptable to have a situation where a vehicle was thought to be dangerous and then an accident actually occurs [2].
EVMJ has stated that it does not recognize the validity of the 9.6 billion yen claim [1]. The financial stakes are high, as reports suggest approximately 4.4 billion yen in tax money was invested in the project [4].
“"Doubts about safety"”
This conflict highlights the operational risks of integrating nascent electric vehicle technology into critical municipal infrastructure. The scale of the refund request and the reported abandonment of over 130 vehicles suggest a systemic failure in quality control or a gap between the manufacturer's technical capabilities and the city's safety requirements. The outcome of this dispute will likely influence how Japanese municipalities vet green-tech vendors for future large-scale public works.
