Posts Tagged ‘used car’

Russia considers raising Import Duty …again

November 20, 2008

UPDATE: RUSSIA TIGHTENS USED CAR IMPORTS

Once again, the Russian government is considering sharply raising Import Duty on used cars to stem the tide of second-hand vehicles entering Russia. Consistently for the past few years Russia has been the top Japanese used car importer, where even last year alone they imported 441,539 used cars and this year looks set to clearly surpass that amount by the end of this year. Being that they import more than four times the amount of automobiles than the next biggest Japanese used car importing country, having Russia exports restricted can hurt this export industry.

The cause of them thinking about raising duties no doubt has multiple factors. For one, Russia has a long history of heavily favoring Lada (a Russia car manufacture) by keeping competition costly with high import costs. Another factors include the desire to get foreign car manufactures to set up plants within Russia (providing Russians jobs), cut the amount of money leaving Russia, and to be less dependent on the used car market.

On the bright side for Japan’s exporters, the idea of raise used car import duty is not new. In fact it has been discussed many times, but dropped when the far-east Russians protested. This is because the majority of the far east Russia relies on Japanese and Korean used cars which are affordable for those living in that market.

Source – Forbes

Car Watch: Mercedes-Benz A-class

November 18, 2008

Looking around to find the most opposite vehicle I could to the last car we’ve highlighted (the Toyota Landcruiser Prado), I found the 2001 Mercedes-Benz  A-class 5d  A160. Compared to the Landcrusier Prado, there seems nothing similar except that it’s a vehicle. The A-class is a much smaller 5door (hatchback), German, in the sub-compact class, much more efficient (13.2km each liter or 4.9L for each 100km), and much different styling. Here’s some photos of the vehicle:

WDB168033 - 2001 Mercedes-Benz A-class 5d A160 - silver WDB168033 - 2001 Mercedes-Benz A-class 5d A160 - silver WDB168033 - 2001 Mercedes-Benz A-class 5d A160 - silver

It’s not a beast. It’s the complete opposite. Maybe you or your customers are looking from something that is effecient and fitting for a city. Having such a small car (although not a Kei) is a big benefit in many ways. Also, perhaps you can find the European look stylish to your taste. However it is, if you or your customers are liking this, don’t forget that you can get them in Japan. Japan has both LHD and RHDs of these models (although more often you will see RHDs).

Excise Tax could Double in Mongolia

October 16, 2008

According to UB Post (Mongolian news agency), the Mongolian Parliament is looking to increase excise taxes on used cars to stem import levels.

Mongolia has been experiencing all time high car import levels these recent years. And as more young men and women come to driving age the expect a very large increase of drivers in the next 5 years. Unfortunately, the infrastructure in Mongolia is not prepared to handle the new massive load and Ulaanbaatar’s (the capitol) roads are already being pushed to their limits.

Mongolian car traders and exporters alike may want to complete deals before the proposal gets approved in Parliament and new import taxes rates are implemented (possibly).

Source- UB Post

Japanese Auto Auction Series Part 7 – ORIX

August 8, 2008

Company: ORIX
General Website:
Locations: Kobe, Atsugi, Nagoya, Fukuoka
Auctions Held: Tuesday, Wednesday, Thursday

In continuation to our series on different auto auctions in Japan, I would like to present ORIX Rental Service Auctions. ORIX is a major rental company in Japan and Asia. Like most rental companies, cars must constantly be replaced with new, more attractive. So you might wonder where that car you rented a few years went? Well most like for ORIX cars, they were probably auctioned off to smart buyers.

One benefit of buying from a rental company’s auction is that you know all the cars are from the same owner. That means there is a roughly the same owner’s care to all the cars presented. Also, the cars would’ve been reguarly checked and serviced by their mechanics. As a rental company, they will want to recover as much value from the car as possible and most likely wouldn’t neglect the cars condition.

One thing to note is that this auction is “Nyuusatsu”. That means you just place a bid once instead of “battling” your way up. All offers are collected and the person with the highest bid wins. This is different from the typical, but it has some benefits. For example, the agent is not wasting time on the actual bidding process and can spend more time on other things like inspecting.

Buying from rental company auctions, such as ORIX’s, has many benefital aspects. Having your exporting agent able to check their auction would be useful, especially for cars and trucks you would expect in a rental fleet.

Related:
Japanese Auto Auction Series Part 1 – USS
Japanese Auto Auction Series Part 2 – JAA
Japanese Auto Auction Series Part 3 – Zip
Japanese Auto Auction Series Part 4 – AAAi / ARAI
Japanese Auto Auction Series Part 5 – Bay Auc
Japanese Auto Auction Series Part 6 – TAA

Finding The Right Car

July 21, 2008

Finding the Japanese car that you want can sometimes be difficult. Instead of getting frustrated and giving up, here are some useful tips to overcome minor problems.

First, let me express some problems you might face:

  • The model name in Japan might be different from the one where you live.
  • The car seems to be sold in other layout (coupe, sedan/saloon, etc.) than you want.
  • You don’t know if the “year” is the manufacture year or first registration year.

These problem can be answered by knowing just a small piece of information. For example, knowing the car chassis number can help you know the particular model, it’s years of production (for that version), and what layout that car is. This number is important because it only gets changed when significant changes are made to a model.

For example, a Honda EK9 is a Civic Type R 3-door hatchback produced between 1997 and 2000. The EP3 is the next generation Civic Type R that was made from 2001 to 2005. On the other hand a Honda EU is a Civic 5-door hatchback built between 2001-2005.

Here are some useful websites to go to:

Wikipedia – Provides information on alternative names for cars, shows the various layouts are car can be found, provides model chassis codes, and other multi-national information. Unfortuantely it is not perfect because of the heavy United States influnce but it still has plenty of usefulness.

Cars-Directory.net – One of many sites that give detailed information on particular models. Also has many pictures available to look at and compare.

Do you have other suggestions? or do you have other questions on how to find the right vehicle? Please write them in the Comments section below!

Bangladesh Proposes Higher Import Duty on Used Cars

June 12, 2008

In the proposed budget for the 2008-09 fiscal year (FY) the government has suggested the following:

  • 20 per cent SD (Supplementary Duty) on vehicles of up to 1500cc
  • 60 per cent SD on vehicles between 1,501 and 2,350cc
  • 100 per cent SD on vehicles between 2,351cc and 3,500cc.

This rates are only applied to used, also called reconditioned, cars. It may change before the budget is put into effect as the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) argues it should be reduced.

BARVIDA believes that raise the taxes on reconditioned car imports will hold back the current progress the economy is experiencing. The connection is that many small and medium businesses rely on the cheaper used car imports to do their business. We will have to see what comes as most vehicles imported come from Japan.

– Source: The Daily Star

New Law from Dubai Tightens Imports

June 10, 2008

The recent decision of the Cabinet’s Services Committee will further restrict the imports of used vehicles into UAE starting January 2009. There will be an import ban on used light cars that are older than 5 years, and heavy vehicles are not allow if older than 7 years.

In good news, light cars over 20 years old are banned in the United Arab Emirates. This will push people to buy newer, better cars. And those vehicles can be from Japan.

Japanese Auto Auction Series Part 5 – Bay Auc

June 6, 2008

Bay-Auc - Japanese Auto Auction in Osaka, Japan

Official Website: www.bay-auc.com
Founded: 1977; Established: 1982
Location: Osaka; Patners: MAA, SUAA
Auctions Held: Wednesday

Bay Auc is a well known auto auction in Japan. One particular advantage this auto auction has over many other auctions is its location. It is situated in an very good location in Osaka, one of the biggest international shipping ports of Japan. The city itself is second only to Tokyo in economical power. You will find that many Japanese used car exporters are either based in the Osaka area or heavily use the Osaka Port for shipping vehicles.

The car auction promises to exhibit at least 3,500 to 4,000 cars every Wednesday starting at 9 AM. It has two simultaneous auction “lanes” running at 400 images an hour. Auction lanes are where they have more than one car being auctioned at any moment. This makes getting through the thousands of cars possible. Bay Auc is not the biggest auction, but they do a good job and have many cars to go through.

Related:
Japanese Auto Auction Series Part 1 – USS
Japanese Auto Auction Series Part 2 – JAA
Japanese Auto Auction Series Part 3 – Zip
Japanese Auto Auction Series Part 4 – AAAi / ARAI

Pakistan Automakers Push Import Ban

May 27, 2008

Pakistani automakers are lobbying the government to ban the imports of used cars into Pakistan.

They argue the high demand that local vehicle producers couldn’t cope with a few years ago has dropped and there is no need for allowing older vehicles in for import. They also cite the fact that local producers have invested billions of rupees to increase their production rate. Since demand dropped and supplies have skyrocketed, they believe their local investment may become the losers if imports are allowed to continue.

Vietnam Plays with Tariff Rates, Business Confidence Drops

May 27, 2008

Within the last 16 months, the Vietnamese Government has changed the tariff rate for importing vehicle 5 times.

The current rate of 83% – effective since April 22nd – was particularly effective at dropping business confidence given that it was put into effect on a one day notice. All previous agreements were charged the new rate despite the fact they were made well before anyone new of the new rate.

Luckily for importers and exporters alike, Vietnam not to long ago joined the WTO which put a ceiling on how much the tariff rate can go up. So importers shouldn’t expect more raise unless Vietnam plans to violate their WTO agreement.

New Zealand Used Car Market Subdued

May 27, 2008

In a combination of rises in fuel prices, costs of living, and government legislation, overall used car sales have dropped. Large, fuel inefficient cars got hit the most with a 20% drop in sales.

In comparison, smaller vehicles and “performance” vehicles have been able to sustain sales. Smaller vehicles because they tend to be more fuel efficient. Sporty “performance” cars because most likely the average consumer for these types of vehicles aren’t concerned with rises in costs too much.

Used car exporters will want to focus more on offering smaller, fuel efficient cars to New Zealanders. Kei-class cars might even break out into main stream exports if fuel prices continue to rise.

Source: New Zealand Herald

Russian Car Importers Hold Protest

April 17, 2008

Last Tuesday Russian Car Importers held a protest against changes made starting April 1st in Vladivostok, Far East Russia, which have caused huge delays getting imported vehicles cleared.

On April 1, two customs posts – Vladivostok Auto Transport and Vladivostok Central – were combined into one – Vladivostok Commercial Port – by officials intended to smooth the process. In reality, the reshuffle has caused much chaos, delays, and as a result, money lost. Because of the large backlog and daily storage fees of about $20 per a car, auto businessmen acquire considerable lost which are bringing in double and triple digit numbers of cars each day. Ships are even being delayed as they must wait a few days before they can offload their vehicles.

In protest, traders decorated their vehicles with orange ribbons and the slogan “Car Dealers against Bureaucracy” and marched in front the Far Eastern Customs Department. Importers are look for the government to step in, cut, and normalize the clearance time. April may be a sluggish month for Japanese used car exports to Russia. Businessmen are looking forward to getting back to schedule.

Driving On The Right Side… Of The Road Or Car?

April 11, 2008

As many of you may be aware, Japan is a RHD (Right Hand Drive) vehicle country like the UK. According to Wikipedia, about 34% of the world by population drive on the left, and 66% on the right. By roadway distances, about 28% drive on the left, and 72% on the right. To visualize this:

RHD vs. LHD on a World Map

Those in blue are RHD and those in red are LHD. The terms left or right hand drive refer to where the driver sits in the motor vehicle not where the car is on the road. So in the case of Japan, the steering wheel is on the right hand side.

Most markets that are already RHD will find much value in Japanese used vehicles. Areas such as South-East Asia, Oceania, Eastern Africa, and the British Isles are major importers. Because they use the same system as Japan, there are less hassles getting the vehicles imported. But just because a country doesn’t drive the same way as Japan doesn’t mean RHD vehicles can’t be imported.

For example, Russia is officially regulated for LHD traffic, but Japanese RHD cars are the single largest supplier of used cars to Russia. Last year over 440 thousand vehicles where exported from Japan into Russia. Russia is estimated to have more than 1.5 million RHD vehicles on its roads. In the far eastern regions, such as Vladivostok or Khabarovsk, RHD vehicles make up to 90% of the total. Many other LHD nations are also importing RHD in the thousands without any problems such as Canada, UAE, Chile, Mongolia, Cyprus, and Peru.

There are two considerations for importers. First, are RHD vehicles legally able to be imported, and more importantly, driven in your country. Even in the case that RHD autos cannot be used on your roads, many governments allow the vehicle to be modified so that it is switched to LHD.

The second consideration is if you are willing to drive “on the wrong side” or will you be able to sell cars to customers that are RHD. It is not a matter of being a safety hazard if the driver sits on the other side. A Canadian study showed that RHD drivers were more careful, thus less likely to get into accidents, than those who drove like normal.

It is also not about not getting able to feel comfortable driving RHD drive in a LHD nation. Most drivers who experience this challenge are able to overcome the awkwardness of driving differently within the first few hours on the road. The main issues are do you mind standing out a little bit and will it bring to much inconvenience to your lifestyle? For example, you’ll need a passenger to help you through drive-thru’s and at toll booths. If you don’t mind, and you can import, there are plenty of benefits.

Image and Statistics from Wikipedia under the terms of the GNU Free Documentation License.

Tianjin, China’s Automobile Imports Increase

April 9, 2008

Xinhuanet reported that, in January and February 2008, 25,400 automobiles have been imported through Tianjin Port, worth 890 million US dollars. China Customs statistics reveal that imports in these two months increased 1.2 times and 1.3 times, respectively, over the same period last year.

Tianjin Port’s automobile import growth is a result of the gradual implementation of the national automobile import policy. In recent years, the Chinese government has promulgated policies related to automobile imports, including import license registration, Administration of Automobile Brand Sales Implementing Procedures, Landed Duty Paid, automobile consumption tax adjustments and tariff adjustments. Along with these implemented policies, policies related to car imports are being implemented, car import policies are stabilizing, and the number of imported cars are growing; new automotive administration procedures will be implemented, according to the Tianjin Customs District.

Source: People’s Daily Online

Japanese Exporters may want to see what is happening over in your neighbor’s land. China has been increasing its consumption at huge rates and more Chinese will be looking for affordable cars soon.

State Worker’s Tax Discounts End In Sri Lanka

April 8, 2008

Sri Lanka has finished a scheme that gave tax-slashed cars to state workers from today and no new applications would be taken, the finance ministry said.

State workers who have been issued tax slashed import permits but have not opened letters of credit before the end of last month (March 31) would not be able to open letters of credit to import vehicles.

However the tax discounts would continue for buying a locally produced or assembled car.

State workers who have already applied and who qualify for the tax concession would be issued a permit to buy locally produced or assembled car, the finance ministry said in a statement.

Earlier reports said around 17,000 state-workers have applied to import tax-slashed cars.

Source-LBO.lk

Vietnamese Prime Minister Goes After Car Imports

April 7, 2008

The Prime Minister of Vietnam, Nguyen Tan Dung, asked the Vietnamese Ministries of Finance and Industry & Trade to use technical barriers and tariffs to restrict imports of automobiles and automobile components for less than 12-seat cars. Besides the raising of Import Tax done last month, both automobile and automobile components are now on the list of “import-restricted” items.

Attempting to reverse the ever growing trade deficit, the Prime Minister asked that imported goods be classified into three categories: essential, controlled, and restricted. All goods categorized in the controlled and restricted groups will face extra difficulties now.

These technical barriers and tariffs that will be applied include: the raising of import tax rates; limiting the access of importers to foreign currency loans; using technical barriers, etc. Japanese used car exporters should expect a slow down on cars exported to Vietnam when these blockades start coming into effect.

Sri Lanka Customs Revenue Takes Hit

March 20, 2008

Just last month, we reported how Sri Lanka raised import taxes by 10%. This month we are seeing the protest of importers have effect. Instead of raising revenue the government gets from imports, they actually get less.

In 2007, the Sri Lanka Customs made Rs.8 Billion less overall than expected. They expected Rs.283 Billion and only made Rs.275 Billion. While there was an overall increase, income from vehicle imports drop by Rs.11 Billion. They were expecting Rs.26 Billion from vehicle excise tax, but only got Rs.15 Billion.

There are a number of reasons for this. First, in 2006, nearly 70% of car imports were from Japan and this year it was only 46% that were mostly buses and vans. The other imports were coming from places such as China, India, and Korea. This other countries make and sell their cars cheaper, so as a result, that means less income for Sri Lanka.

The second reason for less revenue, is because many car imports are being imported by civil servants which get duty free import permits. As people know, Sri Lanka has among the highest duty rates so getting duty free permits really help imports and really reduce import revenue.

This is not the end of this. If import duties continue to stay high, they can continue to expect less revenue. One official says while the revenue target from motor vehicle imports for 2008 is estimated at Rs. 35 Billion, it will be difficult to make even 40% of that estimate. Hopefully, we can see a change of heart and a drop in the super high import taxing.

For more information on importing into Sri Lanka, visit:
Japanese Used Car Exporting.Info – Importing Help For Sri Lanka

1,000 Hits and Counting

February 27, 2008

A little celebration of hitting a century of visits (not including my own) after being open for a little over 3 months. Starting on November 19th,  20 posts later, and an current average of over 100 visitors a week recently, this blog is taking to new heights. So far this February we’ve seen 600 visitors so you can get a picture how much things are accelerating.

Props to WordPress crew though. It an amazing blog system that gets you widely syndicated very quickly. I make a post a within an hour it’s on first or second page of Google search for that topic.

I look forward to seeing how we do this next Quarter. I’ve got more news sources set up so readers look for more to come. And as always, visit our sister sites if you’re looking for more information on importing used Japanese cars:

The Website – Japan-Used-Car-Exporting.info/Import/ -and-
The Forum – JCarsNow.com/JDM/