Used car prices drop in Japan after ban on car exports to Russia
Prices for used cars in Japan continued to decline in August amid tightening rules for exporting cars to the Russian Federation. The average auction price was 1 million yen, down 6.9% year-on-year. This is reported by TASS with reference to the data of the Japanese company USS.
This is the second month in a row that prices have fallen after rising during the pandemic. Experts attribute the trend to the entry into force on August 9 of a ban on deliveries to Russia of cars with engines over 1.9 liters and hybrid cars.
Previously, the Russian Federation was the largest foreign market for used Japanese cars, accounting for 20% of all deliveries. New restrictions, according to forecasts, may affect half of the volumes.
Due to the ban, surplus cars will be redistributed to the domestic market, which will create additional supply and put pressure on prices. In 2022, the supply of new cars from Japan to the Russian Federation fell to almost zero.
At the end of August, it became known how much the price of Japanese cars in Russia had risen after the introduction of new sanctions.