Japan is famous for its thriving automobile industry, not just for making some of the world’s most reliable and innovative cars, but also for exporting a huge number of used vehicles. Garage Dreams is based in New Zealand, and our market is choc-full of ex-JDM vehicles that have been imported as used cars into New Zealand (in fact it’s probably more common to see ex-Japan cars than “NZ new” cars on the roads).
But what’s driving this massive Japanese used car export market? Let’s dive into the details to understand why Japan ships so many used cars overseas.
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The Numbers: Japan’s Used Car Export Market
When it comes to exporting used cars, Japan is one of the biggest players on the global stage. Every year, the country sends over a million used vehicles to different parts of the world. According to the Japan Used Motor Vehicle Exporters Association (JUMVEA), in 2022 alone, Japan exported about 1.3 million used cars. These cars find new homes in countries across Africa, Asia, and Oceania, with places like New Zealand, Kenya, Bangladesh, and Pakistan being some of the largest importers. This isn’t just a small side business—it’s a multi-billion dollar industry that’s crucial to Japan’s economy.
Why Japan’s Car Market Pushes People to Buy New Cars Often
Japan’s domestic car market is pretty unique, and there are a few key reasons why people there tend to buy new cars more frequently than in other countries. This high turnover of cars creates a steady supply of quality used vehicles that can be exported.
- Strict Vehicle Inspection Laws: Japan has some of the toughest vehicle inspection regulations in the world, known as the “Shaken” system. These inspections, required every two to three years, ensure that cars on Japanese roads are in top-notch condition. However, maintaining an older car to meet these standards can get pricey. So, instead of dealing with the hassle and cost, many Japanese drivers decide to trade in their old cars for new ones. The Shaken system also helps to explain why used import Japanese cars often have such low mileage.
- Love for New Things: In Japan, there’s a strong cultural preference for new and shiny things, and this includes cars. For many, owning a brand-new vehicle is a status symbol, which encourages people to replace their cars more often than people in other countries might.
- Chasing the Latest Tech: Japan’s car manufacturers are always pushing the envelope with new technology. Japanese consumers are often eager to upgrade to the latest models that feature the newest tech gadgets and safety features. This constant chase for the latest and greatest also drives frequent car replacements.
Why Do These Used Vehicles Get Exported?
So, with a domestic market that encourages frequent turnover, Japan ends up with a large surplus of used cars that are still in great condition. Exporting these cars makes a lot of sense for several reasons:
- High Global Demand for Affordable, Reliable Cars: Japanese cars are known worldwide for their reliability and quality. Many countries, especially those with developing economies, have a huge demand for affordable, dependable used vehicles. A used Japanese car often costs less than a new or even a locally sourced used vehicle in these markets, making them a popular choice.
- Economic and Environmental Benefits: Exporting used cars is an efficient way for Japan to handle the environmental impact of vehicle disposal. Instead of scrapping cars that are still in good shape, exporting them extends their life and utility. This is better for the environment and helps keep Japan’s domestic car market balanced.
- Support for Developing Markets: Many developing countries benefit greatly from the influx of high-quality, affordable used cars. These vehicles improve mobility and support economic growth in regions where new cars might be too expensive. Japanese used cars are particularly popular in places where the local car industry isn’t as developed, providing a much-needed alternative.
Wrapping It Up
Japan’s role as a leading exporter of used vehicles isn’t just a fluke—it’s the result of a perfect storm of factors both at home and abroad. Strict vehicle regulations, a cultural love for new things, and rapid technological advancements mean that there’s always a fresh supply of used cars in Japan.
Meanwhile, the high global demand for reliable, affordable vehicles makes exporting these cars a smart move.
This arrangement works out well for everyone: Japan can efficiently manage its car market, and importing countries get access to high-quality vehicles at reasonable prices – more affordably than would otherwise be possible.
