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Issue 6-2014 5 April 2014
Trends in Japan to challenge market T
here’s a huge list of variables governing what type of used cars are bought by Kiwis in Japan before they go through the supply chain and arrive at dealerships on these shores. But there is one fact that’s as sure as the sun rises in the east – and that’s whatever the domestic buying trends are in Japan, they will be mirrored in New Zealand further down the line. The make-up of the Japanese market has changed considerably over the past decade, especially when it comes to vehicle size,
and what happens there affects availability for the used industry here. Statistics show that in 2008, for example, the medium-sized Subaru Legacy topped New Zealand’s used imported car sales chart. Last year, the smaller Mazda Demio took out top spot. The changes over the next seven years or so are likely to be more of a challenge because two hybrids were the best-sellers in Japan’s new vehicle market in 2013. Tony Everett, dealer services and mediation manager at the Motor Trade Association (MTA),
says models that used to be mainstays of our used import market are becoming less sought after in Japan and, therefore, harder to secure. “The Legacy – the seemingly perennial favourite for many years on our used import yards – is becoming less common,” he told Autofile. “This isn’t because Kiwi dealers don’t want them. It’s because they are now harder to buy in Japan.” Mid-size two-litre vehicles form a much smaller segment in Japan. This means its so-called
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The government’s decision led to agents there advising many overseas buyers to purchase large amounts of stock before the changes kicked in. Keisuke Nagashima, of AUTOHUB, also says the new tax regime is likely to signal higher buying prices in Japan. “Over the past couple of years, buying patterns haven’t
p3 Eastern sunrise in Aussie p6 Shift in Japanese sales p9 IMVIA crosses the Tasman p12 Insurance clauses ‘crazy’ p16 Movers and market report p19 Buyer misled by dealer
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Tax hike to hit vehicle supply
hanges to the taxation system in Japan are likely to mean higher prices at auction houses and may result in an influx of more of the usual models of used vehicles into New Zealand. Japan’s consumption tax – the equivalent of GST in New Zealand – increased from five to eight per cent on April 1.
In this issue
altered drastically,” he told Autofile. “But with the tax laws changing in Japan, there may be an influx of the usual models into New Zealand for a considerable period of time.” The Japan Automobile Manufacturers’ Association (JAMA), meanwhile, has indicated that deliveries of new vehicles may drop by 16 per cent in the year starting [continued on page 7]
$1.40 to ‘fill up’ hybrid SUV
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