Japan exports to Russia climb
With Russia’s domestic car industry smarting from the impact of western sanctions, sales of used vehicles are leading a relative resurgence there, with Japan accounting for more than three-quarters of those imported.
Sales of new cars produced in Russia have slumped since Moscow sent tens of thousands of troops into Ukraine in late February, with sanctions limiting access to parts and several foreign producers suspending operations in the country.
Their withdrawal, along with the stronger rouble, has pushed up demand for used cars from Asia, with logistical challenges partially to blame for prices being about 10 per cent higher in September than at the start of the year.
Imports, which used to account for about one-fifth of the market by volume and half by revenue, have not yet fully recovered. New-car imports were well below February levels in August, according to data shared with Reuters, but those of used cars more than doubled to 23,117 from 11,055.
The vast majority of used cars – 76 per cent – were imported from Japan, with Belarus a distant second with a 5.3 per cent share, the data shows.
Japanese carmaker Nissan last month took a US$687 million (NZ$1,168m) loss in handing over its business in Russia to a state-owned entity for €1, while Toyota has ended vehicle production in Russia.
The west has sanctioned the export to Russia of some materials used in car manufacturing, while production halts have further impacted the sector.
Japan has sanctioned the export of high-value cars to Russia, but used vehicles imported by individuals fall outside of the sanctions’ remit. Moscow is also promoting a grey-imports scheme to allow supplies of goods to continue.
Almost 70 per cent of the 10,257 new cars imported in August came from China. Bilateral trade between Russia and China has surged this year.
Customs officials in Russia’s far eastern port city of Vladivostok report individual buyers importing more than 100,000 cars via the city from January to August, an increase of almost 50 per cent.
Meanwhile, the make-up of buyers is changing. Individuals increased their share in new-car imports to 23 per cent in August from two per cent in February, reports Business Day.
After the Ukraine invasion, the Association of European Businesses, which represents companies present in Russia, revised its 2022 new-car sales forecast to a drop of about 50 per cent from expected 3.3 per cent growth. In January-September, new-car sales dropped by almost 60 per cent to 506,661 units.
