💴 How Yen Depreciation is Impacting Japan’s Used Car Exports

📉 What Is Yen Depreciation?

Yen depreciation means the Japanese yen has lost value compared to foreign currencies like the U.S. dollar.

Example:

• 1 USD = 100 JPY → A ¥1,000,000 car costs ~$10,000
• 1 USD = 150 JPY → The same car now costs only ~$6,667

So from a global buyer’s perspective, Japanese cars become more affordable, fueling demand.

🚀 Benefits of a Weak Yen for Exporters

✅ Increased Global Demand

Buyers across Africa, the Middle East, and Southeast Asia see Japanese cars as more cost-effective. Orders rise significantly when the yen weakens.

✅ Higher Profit Margins

Selling for $5,000 means:

• At 100 JPY/USD → ¥500,000
• At 150 JPY/USD → ¥750,000
  That’s 50% more in yen, without raising your price in dollars.

✅ Stronger Price Competitiveness

Japanese cars become cheaper than those from Korea, Germany, or the U.S., giving Japan a clear advantage—especially when combined with its reputation for quality.

📊 What the Data Says

• 2024 Export Volume: 1.56 million used cars
• Total Value: ¥1.54 trillion
• Year-on-Year Growth: +2.0% in volume / +17.4% in value

🔍 This suggests demand is rising not just in quantity, but in price per unit.

🌍 Where Are the Cars Going?

🇦🇪 UAE – a gateway to Middle East and Africa

🇰🇪 Kenya & East Africa – high demand for right-hand-drive vehicles

🇷🇺 Russia – still hungry for Japanese models despite political risks

🇨🇱 Chile & 🇳🇿 New Zealand – hybrid and eco-friendly models booming

⚠️ Risks to Watch Out For

🚢 Rising Shipping Costs

Fuel and freight are USD-based, so a weak yen can make logistics more expensive.

🔧 Higher Maintenance Costs

Pre-export inspections or repairs that rely on imported parts become costlier.

💱 Exchange Rate Fluctuations

Sudden yen strength between deal and payment could shrink your profit. Consider hedging tools.

🔮 What’s Next in 2025?

📉 Will the Yen Stay Low?

If U.S. interest rates remain high and Japan maintains its easing policies, yes. But markets shift fast—exporters must stay agile.

🧠 How to Succeed in a Weak Yen Market

• 🌐 Diversify your markets to reduce reliance on one region
• 💳 Use smart currency handling (hedging, USD invoicing, etc.)
• 🛠️ Tailor vehicles to each market’s preferences and regulations
• 📚 Stay informed on environmental/import rules abroad

✅ Final Takeaway

The weak yen in 2025 creates real, measurable opportunities for Japanese used car exporters.

✔ Buyers want more
✔ You earn more per sale
✔ Competition is outpriced

But don’t forget: this is a window, not a guarantee. Act smart. Move fast.

🚗💨 2025 is the time to grow your export business.