The car market is leaving for the 2000s – Newspaper Kommersant No. 12 (7457) dated 01/24/2023

In 2022, almost 200 thousand used cars were imported to the Russian Federation through Vladivostok, which exceeded sales of new Ladas in the domestic market. Basically, we are talking about deliveries from Japan, although analysts say that the share of this direction in total imports is falling due to the import of used cars from Korea, as well as foreign cars through Belarus and Kazakhstan. Experts expect the import of used cars to continue growing this year as well, as domestic production is unlikely to be able to meet market demands.

From data The Far Eastern Customs Department of the Federal Customs Service on the clearance of vehicles follows that in 2022, 197 thousand used cars were imported into the Russian Federation through Vladivostok. This is 72% more than a year earlier. The bulk of imports fell on Japanese brands (Toyota, Mazda, Nissan, Honda, Subaru and Suzuki), but there are also Korean Hyundai and Kia.

The calculations took into account only cars imported by individuals. Their import of used cars from China through the Vladivostok customs “is of a sporadic nature.”

The total import volumes are higher than sales of new Ladas last year (188.6 thousand, according to the AEB).

In December, imports through Vladivostok increased year on year by 2.4 times, to 26,000 used cars, but the peak period for the year was November with a result of 28,000 units. Over 1,700 second-hand foreign cars were cleared by customs posts during the week of January holidays.

“Autostat” estimated the total import of used cars in Russia in December at the level of 38.5 thousand units, of which 62.4% accounted for deliveries from Japan. The second most popular channel is Belarus (14.1%), followed by Korea (7.2%). In the import of new cars (up to three years old), the bulk of deliveries of 30.4 thousand units accounted for China (63.7%), Kazakhstan (18.4%), and Belarus (3.8%). Imports from Japan took only 1.9%, Korea – 2.5%.

Import volumes through Vladivostok have not yet broken historical records, according to a local portal vl.ruthe peak of imports through Primorye was in 2008, when about half a million cars were imported, and already in 2009, after the increase in import duties, only 80 thousand cars.

The share of Japan in the import of used cars before the crisis was about 95%, after which it began to dilute with supplies from Belarus, Kazakhstan, Korea and other countries, Sergey Udalov from Avtostat notes.

The current level of about 60%, in his opinion, will remain stable in the near future. The volume of deliveries of used cars, as well as relatively new ones (up to three years), in 2023 will depend on the ruble exchange rate, the expert believes, and the sensitivity to a depreciation depreciation will be higher precisely in the used car segment, including because the margin reserve for such operations are less than with the supply of new cars.

In addition to exchange rate differences, the throughput of port terminals and logistics will matter, he continues, as well as customs rules. Mr. Udalov notes that there are cases when the customs authorities had questions to individuals who imported more than one car. A similar notice from one of the customs offices was published by Russian Automobile, which reported that the import of more than one car per year by an individual could be considered a commercial activity.

The FCS told Kommersant that they are “guided by international and national customs regulations”, according to which goods for personal use are goods intended for personal, family, household and other needs of individuals not related to business activities .

In the general scale of the used car market in Russia with a turnover of about 5 million cars per year, imports from Japan have been about 6-10% in recent months, Sergey Udalov specified.

Dmitry Babansky from SBS Consulting expects that the growth of used car imports through Vladivostok will continue: “Domestic production will not fully satisfy demand, and a decrease in purchasing power will stimulate demand for used cars.” He estimates the total volume of imports up to 250-300 thousand cars per year. Mr. Babansky agrees that if the exchange rate fluctuates, the used car segment will suffer, but the analyst does not expect a significant fall in the value of the ruble.

Olga Nikitina