LNP – Higher demand on importing vehicles under three years old may raise auction values in Japan: Importers

Other than importing vehicles that are between five and seven years old from their manufacturing dates, importing vehicles under three years old will increase auction values in Japan due to their effect on import costs, the Japan-Sri Lanka Business Council Chairman Jagath Ramanayaka said.

Addressing the media, he said that even though the government imports brand-new or used vehicles, the Customs duty imposed on them remains the same.

“It is more profitable to import vehicles that are less than three years old from their manufacturing year rather than importing vehicles less than seven years old. As a business council, we pointed this out to the government. We believe the government will consider this matter when relaxing the vehicle imports,” he said.

“In the first phase, the country should open vehicle imports and observe the impact. We highlighted that only a few vehicles would be available in Japanese auctions if we restricted imports to vehicles less than three years old. If that happens, competition will increase, leading to higher auction prices in Japan. To address this issue, vehicles should be considered for import if they are less than seven years old or at least five years old.”

Ramanayaka also provided estimated import costs for several vehicles from Japan before reopening vehicle imports.

• Toyota Corolla Cross: Rs. 5.5 million (including shipping charges)
• Toyota Yaris: Rs. 2.7 million to Rs. 3 million
• Toyota Yaris Cross: Rs. 5.5 million
• Honda Vezel (new model): Rs. 6 million to Rs. 6.5 million
• Suzuki Wagon R (new model): Up to Rs. 3.5 million

The auction prices of these vehicles are expected to rise due to increased demand when importing vehicles less than three years old from their manufacturing date.

Therefore, to avoid increased import costs, it is preferable to import vehicles that are less than five or seven years old from their manufacturing year, he added.