Exporting new cars and second hand cars from Japan
Have you ever driven Japanese cars? Japanese automotives have been exported to the world for a long time. Usually automotives tend to be very expensive when they are selling overseas as new cars. For example, Toyota Japan sells a new Land Cruiser from 4,826,800 JPY (=44,723 USD) as new car sales. However, Toyota US sells for 85,565 USD (9,232,891 JPY). Surprisingly, Toyota Indonesia sells it from 2,219,550,000 IDR (15,2915 USD).
Why the new cars are so expensive in other countries is because imported cars cost a lot when selling. Shipping cost, import tax, exhaust test, and registration are charged on each vehicle. It means manufacturers have to cover the cost of the new car and those shipping and inspection amounts simply. That is not really economical for consumers who want to drive import vehicles. In Japan, there are so many vehicle exporters who are trying to send second-hand vehicles overseas. There are huge price gaps between new car sales in other countries and Japanese pre-owned car market. Thus these exporters buy pre-owned cars through car auctions, and sell them somewhere in the world.
Export vehicle ranking from Japan
This picture shows the ranking (Jan/Feb 2021) of the amount of second hand export vehicles from Japan. UAE imports 12,773 vehicles in February 2021. Russia imports 11,206 vehicles as the 2nd importer, and New Zealand is the 3rd. These top 3 countries are always the same for a few years. UAE imports big numbers but these vehicles are going to export to other countries again as an import hub. Chile also has been a big importer and their amount is increasing a lot this time. They usually import vehicles for their domestic market and also for Bolivia, Paraguay. Tanzania, Kenya and South Africa are also big importers.
The Philippine emergency import restrictions (safeguards)
On April 4, the Philippine Department of Trade and Industry (DTI) announced they will impose emergency import restrictions (safeguards) on all passenger cars and light commercial vehicles (LCVs), thinking that the increase in imports is seriously damaging domestic production. New car sales have been declining due to Covid-19, and there is a huge risk that the auto industry will fall into further difficulty. The import tax per vehicle is expected to be 70,000 pesos for passenger cars and 110,000 pesos for LCVs. If the safeguards are launched, it will affect the ranking in near future.