Japan Halts Used Car Shipments to Russia

author: FutureCar Staff    

Earlier this year, there was a significant increase in the number of used cars imported into Russia from Japan. This surge in demand was a result of the Russo-Ukrainian war, which led to international sanctions and a decrease in car sales from other countries. As a result, Russia became a major market for used cars from Japan, accounting for more than a quarter of all exports.

The prices of these used cars from Japan also rose significantly, reaching an average of almost $8,200, which was more than double the average price in 2020. According to figures from Russian analytical agency Autostat, over 50% of the 303,000 used cars imported into the country from January to August were from Japan. This high demand led to companies like SV Alliance exporting an average of 6,500 used cars to Russia each month.

However, the Japanese government implemented a ban on the export of cars to Russia in early August, with the exception of subcompact vehicles like the Toyota Yaris and Honda Fit. This ban has had a significant impact on exporters, forcing them to look for alternative markets such as New Zealand, Africa, and Southeast Asia. As a result, businesses like SV Alliance have seen a 70% decrease in their exports to Russia.

The ban on car exports to Russia is not new, as Japan initially prohibited the export of luxury vehicles in April 2022 and later added heavy trucks to the list. The Japanese government is closely monitoring the impact of these sanctions on the automotive industry. Meanwhile, the mandatory inspections required for used cars in Japan have encouraged the sale of new cars, making Japan a major player in the used car export market. However, with the new bans, companies like Element Trading have experienced a significant decline in their business with Russia.

FutureCar Staff