Posts Tagged ‘used cars’

Russia Tightens Used Car Imports

December 16, 2008

In follow up to our previous blog post, we can confirm used car imports to Russia will have an increase in import duty.

As it was expected, Vladimir Putin has signed the governmental regulation on the increase of import duty on used cars to Russia. The regulation comes into effect in one month since the day of its official promulgation. It is informed that this duty is constituted for the period of 9 months concerning import of automotive engineering, trucks and automobiles.

Import duty on used cars aged from 1 to 5 years rises from 25 to 30 %.

For those who have been importing, you might notice it says 5 not 7 years. Here more on that:

The most disputable question is reduction of maximal import age of cars from 7 to 5. Cars over 5 years will be imposed from 2.5 to 5.8 Euro per 1 ccm import duty. Taking into consideration governmental measures taken on prohibition of car bodies with following parts it is evident that automobile market of Primorye will have hard times soon.

On the positive side, it looks unlikely that RHD (ie Japanese) vehicles will be banned. It is being discussed, but most authorities agree that to ban them would cause to much havoc in the Far East regions of Russia:

…the State Duma authorities discuss the question on imposition of technical regulations on prohibition of right-hand drive cars. But according to the talks of the governor of Primorsky region Sergey Darkin and Secretary of Industry and Trade of Russian Federation Viktor Hrystenko, it is unlikely to happen.

– Source: Vladivostok News

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Romanian Car Caveat Starts Filling

December 4, 2008

While imports (particularly used car trading) seems to be stagnating in most parts of the world because of economic turn down, there are still many nations still empty of affordable cars. Romania is one such place. According to Financiarul.ro:

In the first ten months this year, the number of used cars from import rose 105%, to more than 205,000 units…

As you can see, the eastern European nation is starving for affordable vehicles and while brand-new models remains prohibitively high, used car imports are filling all the holes in the social landscape. While nearly all of these cars are coming from Western Europe, there may be room for Japanese exporters to find sales direct or indirectly from this situation. While it may not be affordable to export cars to Romania (worth finding out for those looking to expand), we can expect the need of replacement cars in those nations that are selling to Romania. Maybe we’ll see increased imports for Ireland/UK/Netherlands as a knock-on effect.

Stats Review: JDM Used Car Exports in 1st Half 2008

September 4, 2008

I was able to obtain the statistics of how many used passenger* cars have been export from Japan during January to June. The statistics do not include trucks and other commerical/non-passenger type vehicles.

Overall Used Passenger Exports from January 2008 to June 2008

Car Units: 579,582
Value: ¥352,310,171,000
(or at today’s exchange rate: $3,249,516,575)

Over three billion (milliard) US Dollars! That’s a whole lot of money for used cars alone.

Top 10 Destinations

Rank Country      | Car Units | Value(Japanese Yen)
  1: RUSSIA       | 260,008   | 163,251,031,000
  2: CHILE        | 55,461    | 11,744,217,000
  3: UAE          | 37,167    | 9,321,093,000
  4: NEW ZEALAND  | 35,640    | 17,991,266,000
  5: MONGOLIA     | 14,322    | 4,342,595,000
  6: KENYA        | 13,013    | 7,342,810,000
  7: SOUTH AFRICA | 12,904    | 3,545,133,000
  8: SINGAPORE    | 12,894    | 21,078,435,000
  9: MALAYSIA     | 12,746    | 25,317,559,000
  10: BANGLADESH  | 10,208    | 10,706,168,000

Russia remains #1 way ahead of everyone as Japan is supplying their used car market rapid expansion. Others continue to remain strong, although old partner New Zealand has slowed down its imports since the new emission regulations have taken affect. Newcomers to the Top 10, Mongolia and Bangladesh, have seen recent sharp rises due to mostly political and somewhat economical changes. They’ve replaced Pakistan (19th) – which has gone through extreme political unrest, and United Kingdom (11th) which has seen reduced demand that is possibly related to economic downturn/unrest.

Together, the top 10 represent roughly 80% of the used passenger vehicles exported from Japan and 78% of the total value of the cars. Thus the top 10 importers hold a landslide majority of sales Japanese used car exporters have made.

Top 20 & 50

Adding the next 10 (Top 20) would make it 90% of car units and 88.5% of total cash amount. Counting the top 50 together will make it roughly 99% of both car units sold and total value.

Draw you own conclusions. The data is quite clear, and if your an exporter, you should have a clear idea what to do. If you want to look at the full data, you can do so by going to:

Japanese Used Passenger Car Export Statistics : January 2008 to June 2008

Note: Car Units and Value data for each country comes from Japan Customs Statistics Office. All other data is calculated by me. Percentages and VPUs are rounded to simplify view.

Putin Tightens Import Taxes for Used Cars

June 3, 2008

Recently, the new Prime Minister Putin held a meeting on the condition of the Russian motor vehicle industry. In his opinion, foreign cars are stifling the success of national brands of Russia. To raise the competitiveness of Russian car makers, used car imports will now have higher taxes at a younger age.

Before the tax wall to keep out old cars from Russia was at 7 years and older, now importers will need to pay an considerable more if the car exceeds 4 years of age. Currently, we don’t know what the exact rates table will be, but we’ll let you know when we do.

Samoa converts to RHD

April 25, 2008

On 18 April, a Samoan law was passed that will now make driving on the left with RHD vehicles the proper way to drive on roads. This is good news for Japanese used exporters and importers who just a few years ago were banned from selling non-LHD cars in Samoa. This will be implemented somewhere in mid-2009.

Previously, only LHD vehicles were importable to driven on the right side of roads. This made it difficult to get a car as major markets around Samoa (New Zealand, Australia, and Japan) have cheap used RHD vehicles. Now, Samoans will be able to get more affordable cars.

Additionally to this new law, the government is also considering extend the age limit for importing used cars. Currently a car can be imported at an 8 years maximum age, but the prime mister’s plans would extend it to 12 years old.

This and next few years will bring a significant number of cars traded as people will start to trade in the LHD vehicles for RHD vehicles. Exporters can look forward to 2009.

Japanese Auto Auction Series Part 2 – JAA

April 23, 2008

JAA Japanese Auto Auction

Official Website: www.jaa.co.jp

Founded: 1971
Number of Auction Sites: 2 throughout Japan
Auctions held each Month: 10-14
Number of Cars Available in 2007: nearly 700,000 (Includes HAA Kobe, part of the JAA group)
Number of Cars Sold in 2007:nearly 365,000 (52.2%)
Locations: JAA Tokyo, JAA Tsukuba, HAA Kobe, JAANET (Satellite), JAAWEB (Internet)

Calling themselves the “Pioneer of The Japanese Automobile Auctions”, JAA is the oldest operating Japanese auto auction group in Japan. The continue to carry a good reputation that allows them to continue to compete. On the negative side, they are know to not have all the technological advancements that the larger, newer auctions have. That being said, they a higher sell completion rate than USS group.

Not many locations, but they are a noticeable part of the non-specialty used passenger car market. If your looking for a everyday car from Japan, the typical Nissan or Toyota car, you should watch their 3 locations.

Related:
Japanese Auto Auction Series Part 1 – USS Group

New Rules for Importing Vehicles in Iran

April 21, 2008

Iran’s Ministry of Commerce has announced new regulations for import of vehicles as a measure to ensure only the latest models get into the country.

Nourlaw.com reports that the Technical Committee for Vehicles has informed importers that in the current Iranian year (March 21, 2008 to March 20, 2009) following registration and entry of the vehicle through an official customs post the vehicle must not have passed one year since the date of its manufacture if it is a passenger car, two years for trucks and five years for motorized construction and mineral extraction machines.

The new regulations are in accordance with the by-law of the regulations for imported vehicle.

Source: Press TV

Get more information on importing from our Newsletter.

Japanese Auto Auction Series Part 1 – USS Group

April 15, 2008

I’ll be trying something new besides the regular news and articles. Each week, hopefully, I’ll be able to post information on one auction establishment in Japan. To start off, we’ll go straight to the top by focusing on the biggest single auction company in Japan, USS Group.

USS Group Japan

Official Website: www.ussnet.co.jp

Number of Auction Sites: 19 throughout Japan
Auctions held each Month: 60-80
Number of Cars Available in 2007: nearly 3 million
Number of Cars Sold in 2007:nearly 1.7 million (57%)
Overall Market Share: 34%
Membership: On-site:41,000; Internet:17,500; Global Network (Sat):6,000

USS Group Auto Auction Site Map

USS stand for Used-car System Solutions. October, 1980 was the month that what became USS Co., Ltd. formed. In August 1982, the first USS auto auction in Nagoya was conducted with 255 vehicles up for bidding. Two hundred and eighty auctioneers participated in this auction coming from throughout Japan.

Over the past few decades, USS Group’s seen huge amounts of growth as they build, acquire, and expand new auction sites to a current of 19 (including 2 recycle auctions). What gave them an advantage to grow into the top position in the market is their development of computer auction software. Allowing others to copy their software, the became immediate market leaders in the technical area.

Besides coming in just before a time of rapid growth in the car auction world, they were able able to capture that growth and increase their reputation through wise business practices. Now they are among the most respectable auctions in Japan. Almost all exporters will carry a USS members ID because mostly of the volume of cars they auction all around Japan.

USS Member\'s ID

Information from USS Group.

Blog News – Breaking the 100 Barrier

April 4, 2008

Just a small update on the progress. Yesterday, we saw for the first time breaking the 100 Barrier – that is 100 people visiting in one day. While small, it excellent progress as we also passed the 3,000 visits total mark. Because we are serving a niche area, we aren’t planning to be in the top ten blogs, but a place to make people more aware about importing used cars and news in this industry.

As a reader, besides reading this blog (we have an RSS Feed), you can also find information from our sister site JUCE.Info, join our discussion forum JCarsNow.com, and sign-up for the free Newsletter.

Japan Used Car Auctions: Not Only Japanese

March 21, 2008

When you think of Japanese used car auctions, you immediately think: Toyota, Nissan, Honda, Suzuki, Subaru, etc. But Japanese make cars aren’t the only cars you can get in Japan. Did you know that there are thousands of non-Japanese used cars going through auction in Japan everyday?

Seriously, the big auctions have sold today (this Friday): 1,012 Mercedes-Benz, 777 BMW, 412 VW, even 166 Mini. Over 230 Chrysler, 113 GM, 230 Volvo, 182 Fords, 106 Chevrolet, and hundreds of other foreign made cars.

If you are in a country that doesn’t have direct access to a particular brand, you could buy it at a Japanese auto auction and have the vehicle imported from Japan. For more information on exporting and importing used cars from Japan, you can visit JUCE.info.

Another reason to buy non-Japanese used cars in Japan is because you will be able to get a cheaper car than importing from another country while the condition of the vehicle has been kept very well. For example, there is a classic that you can buy in your country, but it will cost you a ton of money. You might be able to find the same car for a cheaper price and better maintained in Japan. Many exporters will allow you to use their access to search auto auctions for free if you register with them.

Just to point out, there are many auctions that auction foreign cars in Japan. There are also some Auctions that specialize specialize in Import Vehicles (into Japan) that have many foreign vehicle. One example is Zip Toyko and Osaka. For more information on other auto auctions, visit this Auto Auction In Japan List.

Import Tax Upped In Vietnam

March 18, 2008

Vietnamese Government have decided to raise import taxes for both new and used car imports by 10%. The new rates come into effect at the beginning of April.

After a few years of lowering import taxes to keep vehicle prices down, this year marks yet another change in policy. The government claims they want to restrict the amount of cars being imported and bought to slow down the amount of traffic increases. Traffic jams are at all time intensities, and they feel reducing imports will fix this problem. The real problem is poor urban planning for the only two cities that have real traffic problems: Hanoi, the capitol in the north, and Ho Chi Minh in the south.

Another problem is arising for many importers, not just in Vietnam, but globally. Many countries, like Vietnam, trade in US Dollars. The problem is the value is sinking like a rock and importer who have to wait a month for their consignments to arrive are having a difficult time making profit. I don’t know how longer countries will continue to use the US Dollar, but trade can sure use a switch.

For some more information on import used cars to Vietnam, visit:
Japanese Used Car Exporting.info – Import Help for Vietnam

Changes in Import Markets

January 15, 2008

Russia has seen a recent rise in the number of disassembled cars imported. The used cars are disassembled in Japan and imported as parts, rather than whole vehicles, to benefit from lower tariff rates. This is because Russian Customs office considerable raise the duties for whole car verses car parts. Once it is imported to Russia, a car is reassembled for on road use as a used motor vehicle. Because this has increased dramatically in the recent year (a knock-on effect of the revived/reviving economy), it is said Russia will be taking steps to discourage this “loop-hole” in the rules.

Peruvian importers have had a new regulation for importing used vehicles since the 15th of November, 2007 that put restriction on importing vehicles by allowing used vehicles less than or equal to 80,000km only. Not too bad for them. Many Japanese used cars sold at auctions can run below that limit and still be cheap.

It appears the New Zealand government will indeed put the stricter emission controls scheme into effect starting from the 3rd of January, which is expected to reduce the number of new and old vehicles compared to the previous years. At the requests of importers, they’ve made the ramp-up to higher emission regulations longer than previously set. This may (most likely some say) have an affect on number of imports coming in. Time will tell how long before importers start buying smart.

After all the disappointing news, there is a bright side. Imports are as strong as ever world-wide and people still like JDM cars. Look at all the car that are allowed into countries around the globe. I would predict no loss of ground this coming year as emerging market open up and mature markets get smarter on importing. Of course, that is if they have the knowledge necessary for importing. Something that starts over at Japanese-Used-Car-Exporting.info AKA JUCE.info