Japan slams brakes on sending used cars to Russia, axing lucrative trade
Russia’s demand for second-hand cars from Japan jumped sharply after global carmakers pulled back following Moscow’s invasion of UkraineJapan’s new sanctions have cut off a lucrative backchannel for a network of brokers and smaller ports who trade used Toyotas, Hondas and NissansJapanReutersPublished: 10:40am, 2 Oct, 2023Why you can trust SCMP
Japan’s move to bar most used-car sales to Russia slammed the brakes on a trade nearing US$2 billion annually that had boomed in the shadow of sanctions over Ukraine elsewhere, according to trade data and market participants.In early August, Japan’s government banned exports of all but subcompact cars to Russia, cutting off a lucrative trading backchannel in used Toyotas, Hondas and Nissans for a network of brokers and smaller ports, especially Fushiki, an export hub on the Sea of Japan.While wiping out Russia’s biggest source of used cars, the sanctions have driven down prices for second-hand cars in Japan and left brokers scrambling to send vehicles to other regions, especially right-hand drive markets in New Zealand, Southeast Asia and Africa.
Russia’s demand for second-hand cars from Japan jumped sharply after global carmakers, including Toyota, pulled back from operations following Moscow’s invasion of Ukraine.
