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 can be attributed to the Russo-Ukrainian war that began in early 2022. As a result of international sanctions, many car manufacturers stopped selling their vehicles in Russia, leading to a higher demand for used cars from Japan. In fact, Russia accounted for more than a quarter of Japan's used-car exports, with prices averaging around $8,200, which is more than double the average price in 2020.

According to data from Russian analytical agency Autostat, over 50% of the 303,000 used cars imported into the country between January and August this year were from Japan. At one point, used car exporter SV Alliance was sending an average of 6,500 used cars to Russia each month, but their business has now declined by 70%. The ban on most used-car sales to Russia by the Japanese government in early August has caused exporters to seek alternative markets such as New Zealand, Africa, and Southeast Asia. However, subcompact cars like the Toyota Yaris and Honda Fit can still be exported to Russia.

Japan initially banned the export of luxury vehicles to Russia in April 2022, and this ban was later extended to heavy trucks. Takanori Kikuchi, a director for automotive trade policy at Japan's Ministry of Economy, Trade and Industry, stated that the government is closely monitoring the impact of these sanctions. The mandatory inspections required for used cars in Japan have also played a role in encouraging the sale of new cars, making Japan a major player in the used car export industry. However, many exporters, including Element Trading, have been negatively affected by the new bans, with Russia's share in their business dropping from over 50% to less than 20%.

FutureCar Staff