Japan Halts Used Car Shipments to Russia

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【Summary】Japan has put a halt on most used car exports to Russia, following a surge in demand due to international sanctions and the Russo-Ukrainian war. Over 50% of used cars imported into Russia were from Japan, but now exporters are shifting focus to other markets like New Zealand and Southeast Asia. The Japanese government has banned exports of luxury vehicles and heavy trucks to Russia, leaving exporters scrambling to find buyers.

FutureCar Staff Oct 06, 2023 9:22 AM PT

Japan Halts Used Car Shipments to Russia

Earlier this year, the import of used cars from Japan to Russia accounted for more than 50% of all imported vehicles.

Due to the escalation of the Russo-Ukrainian war in early 2022, Russia saw a surge in its demand for used cars from Japan. This was a result of many major car manufacturers halting their vehicle sales in Russia due to international sanctions. As a result, Russia became the destination for over a quarter of Japan's used-car exports, with the average price of these cars being more than double the average price in 2020, at around $8,200.

According to data from Russian analytical agency Autostat, over 50% of the 303,000 used cars imported into the country between January and August of this year were from Japan. However, the situation has changed since then, as the Japanese government has now restricted most used-car sales to Russia.

One of the reasons for this change is the ban on exporting cars to Russia, except for subcompacts, which was implemented by the Japanese government in early August. As a result, exporters are now searching for alternative markets such as New Zealand, Africa, and Southeast Asia. Some vehicles that can still be exported to Russia include the Toyota Yaris and Honda Fit.

Japan initially banned the export of luxury vehicles to Russia in April 2022 and later added a ban on the export of 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.

According to Reuters, mandatory inspections for used cars in Japan have led to a preference for new car purchases. This has made Japan a major player in the used car export industry, with many companies thriving. However, the new bans have had a significant impact on these exporters, including Element Trading, whose share of business from Russia has dropped from over 50% to less than 20%.