Japanese exports rose 14.9 percent in May, according to the Ministry of Finance and Customs statistics, released on June 20, which makes it the fifth consecutive month of growth in a row and the biggest rise since January 2015. It’s also twice the pace seen in April.
Vehicle exports also grew, up 7.6 percent worldwide to 428,653 units, worth a total $7.2 billion, an average of $17,000 per vehicle. This includes buses and trucks, which generally have a much higher value than traditional Japanese sedans and small cars.
Of these, 119,100 vehicles were shipped to the United States, up 6.8 percent compared to last year, and 45,769 shipped to the European Union, a 16.7 percentjump.
Vehicle exports to Asia rose 7.8 percent to 78,234 vehicles, with 15,844 vehicles shipped to China, a 16.3 percent increase. Imports to the Middle East, however, dropped 19.9 percent to 33,377 vehicles.
For many countries across the world, particularly those who don’t have their own domestic vehicle manufacturing capabilities, the low cost and durability of Japanese motor vehicles make them ideal for day-to-day use, and exports have been rising worldwide, particularly in China, which is set to absorb 30 percent of the global market by 2020.
Japanese car manufacturers have also been branching out into new-energytechnology, such as electric vehicles, plug-in hybrids and fuel-cell vehicles, to help future-proof these massive global brands as demand for alternative energy builds.
A weakening Japanese economy and falling yen have cast concern on the short-term health of Japan’s auto industry. Production of Japanese vehicles has only recently increased for thefirst time in three years, an average of 780,000 vehicles per month, and sales of new vehicles in Japan increased 12.4 percent last month to 372,576. Passenger car exports in May, however, reached 372,825.
When dealer’s stock is accounted for (thousands of vehicles across hundreds of dealerships nationwide), this means more cars were exported than sold in May. How? This is due to Japan’s secret, booming export of used vehicles.
In 2015, the latest year for which statistics are available, over 645,000 used vehicles were exported from Japan, to markets with value-conscious consumers such as New Zealand (which had 113,183 imports), The United Arab Emirates (104,952), Kenya (65,469) Pakistan (44,427) and South Africa (38,463).
These vehicles form an important part of the vehicle market in these countries, where they provide an economically viable vehicle option for low-income households, and used or new cars for sale are available for sale on online websites like Auto Trader, and at specialized dealers.
Vehicle parts is also a booming industry for Japan, up 8.1 percent to $197 million, and the market is set to grow as various technologies become cheaper, and consumers are more interested in upgrading their current vehicles to their individual tastes and needs rather than purchasing a new car.
Dealers who trade in used vehicles from Japan should watch the domestic market closely, as what is in style then is sure to be passing through their hands in a few years’ time.
Vehicle exports also grew, up 7.6 percent worldwide to 428,653 units, worth a total $7.2 billion, an average of $17,000 per vehicle. This includes buses and trucks, which generally have a much higher value than traditional Japanese sedans and small cars.
Of these, 119,100 vehicles were shipped to the United States, up 6.8 percent compared to last year, and 45,769 shipped to the European Union, a 16.7 percentjump.
Vehicle exports to Asia rose 7.8 percent to 78,234 vehicles, with 15,844 vehicles shipped to China, a 16.3 percent increase. Imports to the Middle East, however, dropped 19.9 percent to 33,377 vehicles.
For many countries across the world, particularly those who don’t have their own domestic vehicle manufacturing capabilities, the low cost and durability of Japanese motor vehicles make them ideal for day-to-day use, and exports have been rising worldwide, particularly in China, which is set to absorb 30 percent of the global market by 2020.
Japanese car manufacturers have also been branching out into new-energytechnology, such as electric vehicles, plug-in hybrids and fuel-cell vehicles, to help future-proof these massive global brands as demand for alternative energy builds.
A weakening Japanese economy and falling yen have cast concern on the short-term health of Japan’s auto industry. Production of Japanese vehicles has only recently increased for thefirst time in three years, an average of 780,000 vehicles per month, and sales of new vehicles in Japan increased 12.4 percent last month to 372,576. Passenger car exports in May, however, reached 372,825.
When dealer’s stock is accounted for (thousands of vehicles across hundreds of dealerships nationwide), this means more cars were exported than sold in May. How? This is due to Japan’s secret, booming export of used vehicles.
In 2015, the latest year for which statistics are available, over 645,000 used vehicles were exported from Japan, to markets with value-conscious consumers such as New Zealand (which had 113,183 imports), The United Arab Emirates (104,952), Kenya (65,469) Pakistan (44,427) and South Africa (38,463).
These vehicles form an important part of the vehicle market in these countries, where they provide an economically viable vehicle option for low-income households, and used or new cars for sale are available for sale on online websites like Auto Trader, and at specialized dealers.
Vehicle parts is also a booming industry for Japan, up 8.1 percent to $197 million, and the market is set to grow as various technologies become cheaper, and consumers are more interested in upgrading their current vehicles to their individual tastes and needs rather than purchasing a new car.
Dealers who trade in used vehicles from Japan should watch the domestic market closely, as what is in style then is sure to be passing through their hands in a few years’ time.
