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Restrictions on export of cars to Russia to hit Japan’s regional economy — expert

"Toyama’s businessmen are already expediting supplies of used cars to Russia before the new restrictions come into force on August 9, searching for additional markets, including inside Japan, though such efforts are not unlimited," the expert explained

TOKYO, August 7. /TASS/. Additional restrictions on the export of cars to Russia imposed by Tokyo will have a noticeable impact on Japan’s regional economy, particularly the Toyama prefecture on the Sea of Japan, Hironori Fushita, associate professor at the Russian Studies Department of the Foreign Studies Faculty at Kobe City University of Foreign Studies and research fellow at the Japan Institute of International Affairs, told TASS.

"In 2022, more than half of the Japanese used cars supplied to Russia, around 108,000, were delivered from the Toyama prefecture via the port of Fushiki. New sanctions cut total Japanese exports of used cars by around the same number of cars. In the economy of the Toyama prefecture, the used car business brought in 2-3% of local gross domestic product. The new sanctions may be a serious blow to the region," he said.

"Toyama’s businessmen are already expediting supplies of used cars to Russia before the new restrictions come into force on August 9, searching for additional markets, including inside Japan, though such efforts are not unlimited," the expert explained.

"The used cars that will now not be allowed to be exported to Russia, will partially flow to the Japanese market. It is safe to assume that this will result in a drop in prices and a fall in revenues for used car dealers. In any case, the new restrictions will inevitably deal a major blow to the economy of the Toyama prefecture, which was very much buoyed by business related to supplies of used cars to Russia," he pointed out.

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