The ban on exports to Russia has collapsed the used car market in Japan. Since August, when the ban went into effect, some business owners have experienced a significant drop in sales and subsequent employee layoffs. At the same time, the supply of used cars in Japan on the local market has increased and prices have fallen.
The ban on the supply of used cars to Russia, introduced in Japan in August, caused the local used car market to collapse. This was reported by Reuters in reference to representatives of the Japanese automobile business.
Entrepreneurs surveyed by the publication noted a significant drop in sales. Some companies saw their overall supplies drop by 70%, forcing them to lay off employees. Used car dealers in Niigata Prefecture reported a decrease in Russian participation in their business from 50% to 20%.
At the same time, the supply of used cars on the local market during the same period increased by 20% and their prices fell by 7%.
In July, before the ban on exporting Japanese used cars, its sales to Russia increased by 53%.
Japan has decided to ban the export of all used cars (except small ones), following the example of other countries, Reuters notes. At the moment, Japan has no plans to lift the ban, but is willing to provide subsidies to companies affected by its introduction.
Author:
Kirill Bilyk
Source: RB
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