A ban on exports to the Russian Federation has collapsed the Japanese used car market – Kommersant
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The decision of the Japanese authorities to ban the sale of most used cars in the Russian Federation slowed down the growth rate of trade, the turnover of which was estimated at just under $2 billion a year, reports Reuters with reference to transaction data and market participants.
In early August, the Japanese government stopped exports of all but small cars to Russia, cutting off a lucrative trade channel for used Toyotas, Hondas and Nissans to a network of brokers and small ports. The Japanese government explained that they introduced the ban following the example of other large countries.
Soon after information appeared about the impending introduction of this ban, experts noted a two-fold increase in daily sales of Japanese cars in the Russian Federation. In July of this year, the export of cars from Japan to the Russian Federation increased by 53%.
The introduced ban seriously hit Japanese business, notes Reuters. The agency’s interlocutors note that one of the companies involved in exports in Toyama, before the ban, supplied more than 6.5 thousand cars to the Russian Federation every month. Now the business has shrunk by 70% and we had to lay off employees. A dealer of used foreign cars in Niigata Prefecture has seen Russia’s share of its business drop from 50% to 20%. The number of used cars on offer in the country rose more than 20% in August compared with the previous year, while average prices fell 7%, data from car auction house USS showed.
The Japanese government said it is studying the situation and is ready to provide subsidies to affected business representatives. Officials also explain that at present the possibility of lifting the ban on the export of used cars to Russia is not being discussed.
Read more in the article “Kommersant” “Banzai, buy”.
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