Home > News > Content

Russia Imports A Lot Of Used Cars From Japan As Domestic Output Slumps

Nov 23, 2022

Sales of used cars are recovering relatively as Russia's domestic auto industry suffers from Western sanctions, with Japan accounting for more than three-quarters of imports.

Since Moscow dispatched tens of thousands of troops to Ukraine in late February, sales of new Russian-made vehicles have slumped, sanctions have restricted access to parts and several foreign producers have suspended operations in the country.

6

Their withdrawal, along with a stronger ruble, had boosted demand for used cars in Asia, the central bank said late last month, with logistical challenges partly blamed on September prices being about 10 percent higher than at the start of the year.

Imports once accounted for about one-fifth of the market and about half of revenue, but have yet to fully recover. New car imports in August were well below February levels, but used car imports more than doubled from 11,055 to 23,117, according to data from Russian analytics agency Autostat.

The data shows that the vast majority (76%) of used cars are imported from Japan, with Belarus in second place with a 5.3% share.

Japanese automaker Nissan last month handed over its operations in Russia to a state-owned entity for one euro, costing it $687 million, while rival Toyota has ended vehicle production in Russia.

The West has approved exports to Russia of some materials used in car manufacturing, and production shutdowns have further hampered the industry. Japan has approved the export of high-value cars to Russia, but used cars imported by individuals are not covered by the sanctions. Moscow is also pursuing a gray import scheme to allow supplies of goods to continue.

Of the 10,257 new cars imported in August, nearly 70% came from China, the data showed. Bilateral trade between Russia and China has surged this year.

Individual buyers imported more than 100,000 vehicles through the city from January to August, a nearly 50 percent increase, customs officials in the Russian Far East port city of Vladivostok said.


Send Inquiry