Prices for used cars in Japan have dropped rapidly amid the introduction of anti-Russian sanctions and a decline in exports to Russia, news reports have mentioned.
According to the industry insiders, the drop in prices is due to the decline in demand for cars in Russia, which was the largest buyer of used cars from Japan before the start of the Ukraine war.
According to the newspaper Nikkei, in the first two weeks of March, the average price of a car in the Japanese secondary market was 785 thousand yen ($6.5 thousand), which is 5% less than at the end of February.
Earlier Japan announced sanctions against Russia because of the introduction of Russian troops in Ukraine on 24 February. The latest restrictions were imposed on 18 March. They affected 9 Russian companies and 15 Russians, including officials from the public sector. A total of 76 Russians and 12 Russian companies are already affected by Japan's sanctions.
But, will the drop in used Japanese car prices have any impact on the health of the used cars industry in Japan? According to the observers, the drop may have a minimal impact on the industry as there is a surge in demand for used Japanese cars in other countries which are opening up their economies after long COVID-related restrictions.
