Due to the fact that Toyota and other car manufacturers have ceased operations in Russia, there is currently a shortage of new cars there.
Additionally, the yen has depreciated, making Japanese cars relatively cheap. Furthermore, the Japanese government’s embargo is limited to high-priced cars priced at 6 million yen or more. These factors have pushed up Japanese used car exports to Russia, with exports soaring more than twofold in October.
Exports to Russia
Japanese used car exports to Russia have grown rapidly, according to trade data released by the Ministry of Finance, according to Nikkei News 4. During October 2022, Japan exported 34.5 billion yen in used passenger cars to Russia, a 2.4-fold increase over last October (240% growth).
There were 23,883 units exported, a 67% increase over last month. This year’s numbers and amount were both records. Quantity and amount are both highest in one month this year.
There is no denying that Japan’s used car exports to Russia surged mainly because Toyota and other car manufacturers stopped doing business in Russia, which caused a shortage of new cars in Russia and the depreciation of the yen, resulting in a relatively cheap price on Japanese cars in Russia.
While the Japanese government has imposed economic sanctions on Russia, the ban only applies to cars over 6 million yen in price, and most used cars are not included.
Used car exports to Russia so far in fiscal 2022 (April-October 2022) amounted to 151 billion yen, more than 106.9 billion yen exported in fiscal 2021 (April 2021-March 2022), and the volume of exports was 120,566 units, which is a 25% increase over the same period in fiscal 2021. Then there’s Japan, whose new car exports to Russia have been almost zero since May. Among Japan’s overall exports of used cars, 26% of the value was accounted for by Russia, while 20% was accounted for by China.
The Russian market is characterized by the high popularity of Japanese used cars, since their prices are difficult to decrease. It’s reported that Russia imported used cars from Japan in August 2022, about 80% of them.
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