South Korean media: The rise of China's new energy vehicles is shaking Japan's dominant position in the used car market of emerging countries!
On April 4, South Korean media "Etoday" published an article stating that as the momentum of Chinese new energy vehicle enterprises becomes stronger, Japan's dominant position in the used car market of emerging countries may be shaken. Even Sri Lanka, where Japanese used cars once dominated, is beginning to be hit by Chinese new energy vehicles.
In February this year, Sri Lanka lifted the five-year ban on car imports, allowing Chinese new energy vehicles to enter the local market. An analyst from a large Japanese securities company said, "Chinese new energy vehicles are being exported in large numbers to emerging countries such as Ethiopia, and a similar trend has also appeared in Sri Lanka."
Sri Lanka is a major market for Japanese used cars. After the sluggish sales of cars in Japan in 2010, used cars began to be exported to Sri Lanka. Japanese cars accounted for 70%-80% of Sri Lanka's automobile market share. Subsequently, in 2020, due to foreign exchange shortages caused by the impact of the COVID-19 pandemic, Sri Lanka basically banned car imports, but the car import restrictions were lifted in February.
Although the car import restrictions have been lifted, it is predicted that Japan's dominant position in the market may no longer be as strong as before. The Sri Lankan government is also promoting the consumption of environmentally friendly vehicles, which is one of the factors driving the development of Chinese new energy vehicles. A typical example is the difference in tax rates between gasoline cars and electric vehicles. The price difference between Toyota gasoline car Corolla and BYD electric vehicle Seal due to the tax rate difference is about 1.3 million yen (approximately 63,000 RMB).
Nikkei Shimbun pointed out that if Chinese companies launch a low-price offensive using inventory, Chinese new energy vehicles are likely to become the main players in Sri Lanka's market. Last year, the export volume of Chinese used cars reached a record high of approximately 400,000 units, an increase of 45% year-on-year.
Chinese new energy vehicles have already made a name for themselves in various countries around the world. Since Myanmar abolished the tariff on electric vehicles and basically prohibited the import of gasoline vehicles, the number of electric vehicle registrations increased threefold within a year. Due to the electric vehicle conversion policy, the sales of Japanese used cars in Myanmar have also plummeted sharply. Even in Sri Lanka, which was once dependent on Japanese cars, competition with Chinese new energy vehicles is expected to be fierce.
Original article: https://www.toutiao.com/article/1828472141042889/
Disclaimer: This article represents the views of the author alone.