Osaka Metro has canceled its contract with EV Motors Japan (EVMJ) and is demanding a payment of 9.6 billion yen [1].
This legal escalation follows the conclusion of the Osaka-Kansai Expo, where the electric buses were intended to provide critical transport. The dispute highlights significant failures in vehicle safety and corporate management that may have jeopardized public transportation during a high-profile international event.
Osaka Metro notified EVMJ of the contract termination after the discovery of numerous functional defects and safety issues [1], [4]. Reports indicate that EVMJ had flagged a high volume of malfunctions as early as September 2025 [4]. An EVMJ official said the malfunctions were extensive, stating, "There are just too many defects. It is a situation where it would not be strange for any kind of malfunction to occur" [1].
Financial claims regarding the fallout vary across reports. While Osaka Metro is seeking 9.6 billion yen [1], other reports have cited figures of 5 billion 700 million yen in relation to the company's bankruptcy and refunds [5]. The transit operator had purchased 148 EV buses [1], but following the contract termination, it said it would not accept more than 130 of those vehicles [1].
Osaka Mayor Hideyuki Yokoyama emphasized the necessity of recovering the funds. Yokoyama said that the city must work thoroughly to ensure the refund request is met, adding, "I thought it was dangerous, and in the end, it was dangerous. It is absolutely unforgivable to say an accident happened" [1].
EVMJ has said it does not recognize the validity of the 9.6 billion yen claim [1]. Meanwhile, some reports suggest Osaka Metro may consider filing a lawsuit to recover subsidies [6].
“"There are just too many defects. It is a situation where it would not be strange for any kind of malfunction to occur"”
The conflict between Osaka Metro and EV Motors Japan underscores the risks associated with deploying unproven electric vehicle technology on a massive scale for time-sensitive events like the World Expo. The discrepancy in refund amounts and the refusal of the manufacturer to accept the claim suggest a protracted legal battle over liability and product failure, which could impact how Japanese municipalities procure green transit technology in the future.
