Overview of Japan's used car exports in the first half of 2024
Japan's used car exports in the first half of 2024 were 775,274 units. Compared with 728,240 units in the same period last year, it increased by about 47,000 units, a year-on-year increase of 6.5%, setting a new record.
Judging from these results alone, the situation in the first half of this year can be evaluated as good, but it is necessary to see the fact that the cumulative results up to April showed a year-on-year increase of 17%, with a double-digit growth momentum, but it has fallen sharply by more than 10% in just two months. The situation is not optimistic in any way.
The specific reason for the sharp decline is the export volume in June alone. To put it bluntly, it is because the turmoil and natural disasters in the Middle East since last year have restricted the passage of the two major shipping routes in the world, resulting in various adverse effects, including a significant reduction in the dispatch of ships and a sharp increase in shipping costs. In addition, there is the impact of relevant international policies, raising trade tariffs on China, triggering a demand boom in China, leading to the development of a container battle, and triggering a straight rise in container freight rates.
By destination country, the UAE was the largest destination country in the first half of this year, reaching 111,429 vehicles, a year-on-year increase of 20%. This is also the first time that the number of vehicles in the first half of the year exceeded 100,000. Due to the growing demand in Africa and the Middle East, the UAE mainly transports low-age and low-priced vehicles by container transportation, achieving record results in the first half of this year.
Russia, ranked second, fell by more than 20% year-on-year to 95,978 vehicles, less than 100,000 vehicles. Although Russia's car sales reached 123,683 units last year, this figure was entirely created by gasoline/diesel vehicles under 1900CC. Due to the economic sanctions imposed in August last year, restricted vehicles such as gasoline/diesel vehicles and HVs above 1900CC can no longer be exported directly. In a sense, it is remarkable that such a large number of vehicles can be exported only by non-restricted vehicles.
Mongolia ranked third, surpassing New Zealand, which has maintained a fixed position for many years. Mongolia's exports increased by 77% year-on-year to 59,335 vehicles, but the actual domestic demand is only 30,000 to 35,000 vehicles at best. Where did the remaining 25,000 to 30,000 go? It is estimated that almost all of them were re-exported to Russia.