According to U.A.W. talking points, the Japanese car market is closed to foreign imports, and the yen is kept artificially low. Utter insanity on both counts. The customs duty on new cars imported to Japan is exactly zero, and the yen is so obscenely expensive that Japanese carmakers openly threaten to leave and privately are shifting as much production as possible out of the country. Unbeknownst to talking point readers, Japan has had a thriving car import market for decades. For more than a year, imports to Japan showed an uptick. TTAC has been taking about this for quite a while, here, then here and also here.
Today, The Nikkei [sub] did wise up to the fact that imports are getting hotter in Japan despite a tepid new car market. The Nikkei sent a reporter to an Audi showroom, interviewed a BMW customer, and noted a societal change: “My wife prefers foreign cars, so that’s why we bought one,” a bank employee who traded his domestic car for a BMW told The Nikkei. “They have lower fuel efficiency than Japanese cars, but that is not a big problem because we drive only on weekends.”
Now what’s really going on with imports to Japan? Let’s look at it a little closer. (Read More…)