Japan Restricts Used Car Exports To Russia

author: FutureCar Staff    

Earlier this year, there was a significant increase in the number of used cars imported into Russia, with over 50% of these cars coming from Japan. This surge in demand was a result of the Russo-Ukrainian war, which led to international sanctions and caused many car manufacturers to stop selling their vehicles in Russia.

As a result, Russia turned to Japan for their used car needs, accounting for more than a quarter of all used car exports from Japan. The prices of these cars also rose, averaging almost $8,200, which was more than double the average price in 2020.

According to figures released by Russian analytical agency Autostat, over 50% of the 303,000 used cars imported into Russia from January to August were from Japan. However, the situation has changed since then.

In early August, the Japanese government implemented a ban on exporting cars to Russia, except for subcompact vehicles. This sudden ban has left exporters scrambling to find new markets for their vehicles, with a focus on countries like New Zealand, Africa, and Southeast Asia. The Toyota Yaris and Honda Fit are among the few models that can still be exported to Russia.

This ban on car exports to Russia is not the first restriction imposed by Japan. Luxury vehicles were initially banned in April 2022, and heavy trucks were recently added to the list. 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.

One reason for Japan's dominance in the used car export market is the mandatory inspections required for used cars in the country, which encourages the sale of new cars. However, with the new bans in place, many exporters have been severely affected. For example, Element Trading has seen the share of Russia in its business decline from over 50% to less than 20%.

FutureCar Staff