Japan's ban on used car exports to Russia to result in nearly USD2B loss
Date
10/3/2023 8:44:15 AM
(MENAFN) Japan's decision to extend its ban on car exports to Russia by including used vehicles is expected to incur a substantial economic cost, nearing the sum of USD2 billion. According to trade data and insights from industry participants, this move, which went into effect in early August, has severed a profitable sales channel for secondhand vehicles from major Japanese automakers like Toyota, Honda, and Nissan. The ban restricts the sale of all but subcompact vehicles to Russia, affecting a network of brokers and smaller ports that had thrived on the trade of these automobiles.
Japan's initial prohibition on exporting luxury vehicles to Russia had been implemented in April 2022 as a response to sanctions against the country. Subsequently, in June, further restrictions were added, preventing the sale of heavy trucks to the Russian market. The cumulative impact of these measures is felt most acutely in the used car export industry, with market participants estimating the loss to be close to USD2 billion.
This development highlights the complexities of international trade dynamics and their susceptibility to geopolitical tensions and sanctions. The ban on used car exports serves as a significant blow to Japan's automotive industry and underscores the challenges faced by businesses operating in a global landscape marked by geopolitical uncertainties and evolving trade policies.
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