Demand for pre-owned Japanese automobiles has been shrinking in African countries that export resources to China, resulting in lower vehicle prices, a foreign media report said last week.
According to Nikkei Asian Review, this has turned the Japanese used-car industry into another unexpected casualty of the slowing Chinese economy.
“Natural-resources-exporting countries in Africa cannot buy as many Japanese used cars as before because China is not buying as much natural resources as before,” the media report said quoting Hiroshi Sato, chairman of the Japan Used Motor Vehicle Exporters Association.
Japan’s used-car exports for the January-April period fell 7% to 320,000 units, trade statistics show, the first year-on-year decline since 2009. Meanwhile, the report pointed out that a drop in exports to Sri Lanka also hurt Japan’s used-car market.
“Preferential tariffs on hybrid vehicles helped the South Asian country become the biggest export market for Japanese used cars in 2015 in terms of value and sixth in terms of quantity. But the government started lifting tariffs in late 2015, with the latest hike — targeting midsize hybrids, announced Thursday,” the report highlighted.