Emergic: Rajesh Jain's Blog

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Second Hand Japanese Cars in Third World

January 10th, 2004 · No Comments

[via Vivek Padmanabhan] WSJ writes:

In Japan, quirks of the market — and the consumer — have created a glut of saleable used cars. Strict and expensive vehicle inspections in Japan discourage people from holding on to cars as they age. Moreover, there is a strong cultural aversion among the Japanese to buying almost anything second-hand.

The result: Ships filled with low-priced cars — everything from sports cars to high-mileage vehicles, damaged cars and patched up wrecks — leave Japanese ports for emerging markets. The cars end up in Africa, the Middle East, the Caribbean and Asia, accelerating motorization in areas where new cars are still beyond the reach of many consumers.

The global auto industry is waking up to the repercussions, as Japanese brands — particularly Toyota — find their way to first-time buyers. Many African cities are already teeming with Toyotas, even though very few new cars have been sold there. That’s troubling for Detroit car makers, which have been eyeing new markets to spur sales as developed nations become saturated with cars.

Wish the same thing could happen in computers – except that the Indian government has an anti-dumping duty of USD 200 per second-hand PC.

Tags: Emerging Markets

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