Japan Restricts Export of Pre-Owned Vehicles to Russia

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【Summary】Japan has put a halt on exporting used cars to Russia, after they accounted for over 50% of all used vehicles imported into the country. The ban, which includes all cars except subcompacts, has caused exporters to shift their focus to other markets such as New Zealand, Africa, and Southeast Asia. The Japanese government has been gradually implementing bans on luxury vehicles and heavy trucks since April 2022.

FutureCar Staff Oct 08, 2023 4:20 PM PT

Japan Restricts Export of Pre-Owned Vehicles to Russia

Earlier this year, the import of used cars from Japan to Russia reached a significant milestone, accounting for over 50% of all imported vehicles.

However, the situation has changed since the escalation of the Russo-Ukrainian war in early 2022. Japan has now implemented restrictions on the sales of used cars to Russia.

The demand for used vehicles from Japan skyrocketed after international sanctions led major car manufacturers to halt sales in Russia. In fact, Russia accounted for more than a quarter of Japan's used-car exports, with prices averaging almost $8,200, more than double the average price in 2020.

Data from Russian analytical agency Autostat reveals that over 50% of the 303,000 used cars imported into the country between January and August were from Japan. However, the business has taken a hit, with used car exporter SV Alliance experiencing a 70% decrease in sales to Russia.

So, why has this decline occurred? In early August, the Japanese government banned the export of all cars to Russia, except for subcompacts. This has forced exporters to seek alternative markets such as New Zealand, Africa, and Southeast Asia. Notable exceptions to the ban include vehicles like the Toyota Yaris and Honda Fit.

Japan initially banned the export of luxury vehicles to Russia in April 2022 and recently extended the ban to heavy trucks. Takanori Kikuchi, a director for automotive trade policy at Japan's Ministry of Economy, Trade and Industry, states that the government is monitoring the impact of these sanctions.

Reuters highlights that mandatory inspections for used cars in Japan encourage the sale of new cars. Consequently, Japan has become a leading exporter of used cars, and many companies have thrived. However, the new bans have significantly affected these exporters, with companies like Element Trading seeing Russia's share in their business decline from over 50% to less than 20%.