Japan halts profitable used-car trade with Russia

Date:

Japan’s recent ban on most used-car sales to Russia has had a significant impact on a trade that was nearing $2 billion annually. The ban, implemented in early August, cuts off a lucrative channel for trade in used cars between the two countries, particularly through export hub Fushiki. Russia’s demand for second-hand cars from Japan had soared after global automakers scaled back operations in response to the Ukraine crisis. In 2020, Russia was buying over a quarter of Japan’s used-car exports. However, the ban has led to a drop in prices for second-hand cars in Japan and has forced brokers to redirect their vehicles to other right-hand drive markets, such as New Zealand, Southeast Asia, and Africa.

Japan has long been a leading exporter of used cars due to a system of mandatory inspections that raises maintenance costs for domestic customers. As a result, hundreds of thousands of Japanese cars have been exported and sold in countries around the world. However, the ban on used-car sales to Russia has resulted in a decline in business for Japanese car exporters, leading to job losses and a surge in the number of used cars available in the domestic market. While some businesses have welcomed the decline in prices, it has had a significant negative impact on the used-car export industry in Japan.

Overall, Japan’s ban on used-car sales to Russia has disrupted a trade worth nearly $2 billion annually. It has wiped out Russia’s largest source of used cars and led to a decline in prices for second-hand cars in Japan. Brokers have been forced to redirect their vehicles to other right-hand drive markets, while businesses in Japan have experienced a decline in sales and job losses. The ban has had a significant negative impact on the used-car export industry in Japan, which has been a major player in the global market for decades.

Source link

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

Trump Media shares plummet almost 20%, shedding billions in market value.

The price of Trump Media shares plummeted nearly 20%...

Successful short seller responsible for Globe Life’s stock drop boasts impressive track record.

Fuzzy Panda Research, an anonymous activist short-selling organization, has...

Democrats considering options for getting Biden on Alabama and Ohio ballots.

Democrats are facing a challenge in getting President Joe...

Microsoft begins testing ads in Windows 11 Start menu.

Microsoft is testing the placement of ads within the...