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📈 Japan Used Car Exports July 2026: Russia No.1 for 5 Straight Months, Mongolia Up 2.4x, Sri Lanka Halved

9月30日
読了時間: 9分
This report is based on Japan's official trade statistics (Ministry of Finance, Japan Customs), compiled and analyzed by JapanCarrier (Japan Carrier Co., Ltd., Tokyo). Last updated: September 30, 2026.

Japan Used Car Exports July

Japan exported 140,011 used vehicles in July 2026 (93.1% year-on-year), the second single-month decline this year after May.

Russia remained the No.1 destination for the fifth consecutive month with 23,840 units (139.9% YoY). Tanzania was second with 11,578 units (123.3%) and Mongolia third with 8,413 units (236.5%).

Sri Lanka fell to 6,113 units (53.2%), roughly half of last July. The UAE, once Japan's largest market, stayed low at 3,280 units (17.0%), although it is showing early signs of bottoming out.

Cumulative exports for January–July reached 993,374 units (102.1% YoY), just short of the 1 million mark.

This report explains why five key markets moved the way they did: Russia, Mongolia, Sri Lanka, the UAE and Pakistan. We look at regulation, taxes, logistics and exchange rates.

🌟 July 2026: Top 10 Destinations for Japanese Used Cars

Top 10 Destinations for japanese Used Car Export, July 2026

Rank

Country

July 2026

YoY

Jan–Jul 2026

YoY (cumulative)

1

Russia

23,840

139.9%

134,440

133.6%

2

Tanzania

11,578

123.3%

99,675

175.0%

3

Mongolia

8,413

236.5%

50,577

111.9%

4

New Zealand

8,008

145.1%

54,846

128.0%

5

Chile

7,077

107.8%

52,979

119.4%

6

Kenya

6,609

82.2%

43,747

103.7%

7

Sri Lanka

6,113

53.2%

44,363

141.7%

8

South Africa

5,392

114.9%

43,781

124.3%

9

Thailand

4,794

177.1%

28,152

87.3%

10

Malaysia

3,974

88.9%

32,136

108.3%

—

Total

140,011

93.1%

993,374

102.1%

(Source: Japan Customs trade statistics, compiled by JapanCarrier. Reference: Japan Customs Trade Statistics)

Three key takeaways

  1. Russia's lead is widening. Russia took 17.0% of all Japanese used car exports in July. June's 26,272 units was the highest monthly figure since 2025, and July was the second highest. Russia's Jan–Jul total of 134,440 units is already 72% of its full-year 2025 total (186,584).

  2. Two markets explain most of the decline. The overall year-on-year drop of 10,401 units comes almost entirely from the UAE (−16,012) and Sri Lanka (−5,378). Excluding the UAE, cumulative exports are up 15.3% year-on-year, so underlying demand for Japanese used cars remains strong.

  3. Developed right-hand-drive markets are growing. Australia (174.7%), Ireland (169.7%) and New Zealand (145.1%) all rose sharply. Thailand (177.1%) and Myanmar (78 → 1,359 units) rebounded from weak 2025 levels.

🔍 Why is Russia still the No.1 market despite sanctions? (July: 23,840 units, +39.9% YoY)

Japanese Used Car Exports to 5keys Markets
Answer: Demand is concentrated in the segment that sanctions do not cover: small-engine, lower-priced petrol cars. On top of that, fewer cars are reaching Russia through third countries, and Russia's import fees are scheduled to keep rising, both of which appear to push more buyers to import directly from Japan. Monthly volumes went from 11,194 in January to 19,424 in March, 26,272 in June and 23,840 in July. Russia has been No.1 every month since March.

1️⃣ Demand focused on non-sanctioned vehicles.

Since August 2023, Japan has banned exports to Russia of petrol and diesel cars over 1,900cc, hybrids, plug-in hybrids and EVs, and vehicles priced above ¥6 million. Petrol cars at or under 1,900cc can still be exported legally, and demand has concentrated there. japan-carrier


2️⃣ Less rerouting through Kazakhstan.

Reports indicate that from April 2026, a compensation mechanism within the Eurasian Economic Union removed the cost advantage of importing via Kazakhstan. Flows that once went through third countries now appear to go directly from Japan to Vladivostok, which raises the numbers in Japan's statistics. Carawon


3️⃣ Buying ahead of fee increases.

Russia began phased increases to its vehicle recycling (utilization) fee on January 1, 2026, with rises of roughly 10–20% a year planned through 2030. This gives importers a reason to bring cars in before each new increase. JP Sheet


4️⃣ Risks to watch.

Competition from Chinese brands, possible regulatory changes on either side, and payment-channel constraints all remain risks. Russia's No.1 position should be checked month by month rather than assumed.


🔍 Why did exports to Mongolia jump 2.4x? (July: 8,413 units, +136.5% YoY)

Answer: Two factors combined. First, July 2025 was a weak month (3,558 units), so the comparison base is low. Second, since March 2026 volumes have held steady at around 8,000 units a month, with March to July all above 7,500.

1️⃣ Tax incentives for hybrids.

In Mongolia, hybrids (HEVs) are exempt from excise duty and air-pollution-related controls, which is seen as a main driver of import growth. HEVs make up 29.9% of state-inspected vehicles, second only to petrol cars. Used Japanese hybrids such as the Toyota Prius are the core product for this market. Changing Transport


2️⃣ Solid economic growth.

The World Bank projects Mongolia's economy to grow 5.0% in 2026. JapanCarrier


3️⃣ Fears of a demand slump have faded.

In May, Mongolia's cumulative total was only 88.2% of the prior year. By July it had recovered to 111.9%, and the Jan–Jul total of 50,577 units is already 76% of full-year 2025 (66,399).


🔍 Why did exports to Sri Lanka fall by half? (July: 6,113 units, −46.8% YoY)

Answer: July 2025 (11,491 units) was Sri Lanka's peak month after imports reopened in 2025, so this year's figure faces a very high comparison. New import surcharges and tighter car-loan rules introduced in May 2026 are also cooling demand. Even so, monthly volumes are stable at around 6,000 units, and the Jan–Jul total of 44,363 units is still up 41.7% year-on-year.

1️⃣ A 50% customs duty surcharge, now extended.

A 50% surcharge on Customs Import Duty was reintroduced from May 16, 2026. Imports under letters of credit opened on or before May 15 are exempt. A gazette dated August 14 extended the surcharge until December 31, 2026. PixampCALCLK


2️⃣ Tighter credit and slowing imports.

Loan-to-value limits for vehicles were tightened on May 25. August vehicle registrations fell 13.8% month-on-month to 45,569. According to the Central Bank of Sri Lanka, vehicle imports cost US$182 million in June, down from May. The first-half 2026 total was US$1.25 billion, below the US$1.57 billion recorded in the second half of 2025. LNW Lanka News WebBusinessnews


3️⃣ What importers should do.

With the letter-of-credit exemption no longer available, buyers need to price in the surcharge through year-end. Age limits and tax rates change often, so always check the latest gazette notifications before shipping.

🔍 Are exports to the UAE recovering? (July: 3,280 units, 17.0% of last year)

Answer: Monthly figures suggest a bottom: 283 units in May, 2,277 in June and 3,280 in July. However, the Strait of Hormuz closed again in mid-July, so a full recovery is not yet in sight. The Jan–Jul total of 44,083 units is only 29.4% of last year's level. In 2025 the UAE was Japan's largest destination with 252,637 units.

1️⃣ A brief "reopening" in June, then closure again in July.

The strait reportedly closed again in mid-July 2026, about six weeks after the shipping industry had begun to treat the crisis as over. The June–July pickup most likely reflects cars contracted and shipped during that short window. Vortex Shipping


2️⃣ Jebel Ali volumes collapse and cargo is rerouted.

Jebel Ali handled 374,000 TEU in Q2 2026, down 80.1% year-on-year. Major carriers now discharge at Khor Fakkan or Salalah, outside the strait, and transship to Gulf ports, adding 7–14 days to transit times. Maritime NewsGreathensen


3️⃣ Still effectively closed at the end of September.

As of late September, the Strait of Hormuz is reported to remain effectively closed to commercial shipping. Re-export businesses that depend on Dubai should keep contingency routes ready.


🔍 Market to watch: Why is Pakistan recovering? (17 units in March → 2,192 in July)

Answer: Imports almost stopped after the personal import route was abolished, and are now recovering as trade shifts to the commercial import route. The Jan–Jul total is still low at 6,755 units (26.9% YoY), but monthly exports have risen for four months in a row.

Under SRO 61(I)/2026, issued by the Ministry of Commerce on January 15, 2026, the Personal Baggage scheme for overseas Pakistanis was removed from the import policy. Commercial imports, meanwhile, are being gradually opened: the regulatory duty was reportedly cut from 40% to 30% for fiscal year 2026–27, and the five-year age limit was lifted from July 2026. However, other reports say a new 30% regulatory duty will be added on top of existing duties, so the information is conflicting. Please confirm the latest SROs before trading.


🔮 Outlook and opportunities for importers

1. Japan's used car exports should pass 1 million units once August data is released. Only 6,626 more units are needed to reach 1 million. Whether 2026 beats 2025's record of 1,708,604 units depends on how much of the UAE's lost volume other markets can absorb.


2. Tanzania may pass its 2025 full-year total around September. Its Jan–Jul total of 99,675 units is 84.8% of 2025's 117,489. Momentum slowed in July to 11,578 units, but at 10,000+ units a month a new annual record is within reach.


3. The yen remains weak, which is good for overseas buyers. Early-2026 forecasts expected the yen to strengthen by year-end. For example, Sumitomo Mitsui DS Asset Management forecast ¥150 per dollar at the end of 2026. Instead, the dollar rose to the upper ¥158 range in late September, partly because of tensions in the Middle East. This keeps Japanese cars relatively cheap when priced in dollars. However, domestic auction prices remain high, so importers should check their total landed cost (FOB, freight and duties) rather than the exchange rate alone. smd-amoanda


4. Hybrids for developed right-hand-drive markets are a growth area. Australia, Ireland, New Zealand and the UK (Jan–Jul: 154.0% YoY) are growing, and hybrids there sell at higher unit prices.


5. Risks to watch:

  • The Strait of Hormuz situation (UAE and Gulf routes)

  • Sri Lanka's surcharge, in place until December 31

  • Changes to Pakistan's duties

  • Tighter Russian regulation and competition from Chinese brands

Looking for a reliable partner in Japan? JapanCarrier (Japan Carrier Co., Ltd.) supports overseas buyers with auction bidding, domestic transport, export deregistration, customs clearance, shipping and marine cargo insurance, all from Tokyo, with our own yard in Noda, Chiba. Contact us to discuss your target market.

❓ FAQ

Q1. What was the top destination for Japanese used car exports in July 2026?

Russia, with 23,840 units (139.9% YoY). This was Russia's fifth consecutive month at No.1 since March. Tanzania (11,578 units) and Mongolia (8,413 units) came second and third (Source: Japan Customs statistics, compiled by JapanCarrier).


Q2. How many used cars did Japan export in July 2026?

140,011 units, which is 93.1% of July 2025. Most of the decline came from the UAE (−16,012 units) and Sri Lanka (−5,378 units). The Jan–Jul total was 993,374 units, 102.1% of the same period last year.


Q3. Why are used car exports to Mongolia increasing?

Part of the jump reflects recovery from a weak second half of 2025. In addition, monthly exports have held at around 8,000 units since March 2026, supported by tax incentives for hybrid vehicles and solid economic growth.


Q4. Why did used car exports to Sri Lanka decline?

July 2025 was an exceptionally strong month, and in May 2026 Sri Lanka reintroduced a 50% customs duty surcharge (now extended to December 31, 2026) and tightened car-loan rules. The Jan–Jul total is still up 41.7% year-on-year.


Q5. Are exports to the UAE recovering?

There are early signs: 283 units in May, 2,277 in June and 3,280 in July. However, July was still only 17.0% of last year, and the Strait of Hormuz closed again in mid-July, so a full recovery is uncertain.


Q6. Is now a good time to import used cars from Japan?

For buyers paying in US dollars, the weak yen (around the upper ¥150s per dollar in late September 2026) keeps Japanese cars relatively affordable. Domestic auction prices are high, however, and import rules in many countries changed in 2026. Check your total landed cost and your country's latest regulations before buying.


Q7. Where can I find official statistics on Japan's used car exports?

The primary source is Japan's trade statistics published by the Ministry of Finance (Japan Customs). Preliminary figures come out in the middle to late part of the following month, and final export figures around the end of the following month.


About this report


Data compiled and written by Japan Carrier Co., Ltd. (JapanCarrier)

TK Monzen-Nakacho Bldg. 7F, 1-2-13 Etchujima, Koto-ku, Tokyo, Japan / Tel: +81-3-5875-9239

We provide end-to-end services for used car exports from Japan: auction agency, inland transport, export deregistration, customs clearance and shipping, and marine cargo insurance.


👉 Past Export Reports：

📚 過去の統計記事 / Past Monthly Reports:

2024年8月の統計記事 / August 2024 Report


 
 
 
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