SL imported $ 318 m worth of used Japanese vehicles in 1H25, surpassing 2019’s full-year total Highlights strong preference for used Japanese cars over competing EVs due to perceived asset value Sri Lanka has imported $ 318 million worth of used Japanese vehicles in the first six months of the year, as used car import figures from Japan are set to record an all-time high by the end of 2025.According to a report by Nikkei Asia, trade statistics from Japan’s Ministry of Finance show that the value of these exports for the first half has already surpassed the full-year figure of $ 279 million for 2019, just before the ban.

This is second only to the tally for the first half of 2018, a record $ 450 million. Exports to Sri Lanka for the first six months of the year accounted for 6% of all Japan’s used passenger vehicle exports.Given that these statistics only cover five months since the ban was lifted in February, and the fact that June alone saw a jump to $ 110 million, Nikkei Asia said numbers for the full year are likely to hit a new high.Used cars from Japan have always been popular in Sri Lanka, and many see buying a “new used car”, defined as less than three years old, as a good investment. In the industry, the country has long been known as a new and used car paradise.

Sri Lanka was the biggest destination for Japanese used vehicle exports by value in both 2015 and 2018. Japanese cars are a good fit, as traffic keeps to the left and steering wheels are on the right in both countries.The average value per vehicle is also higher now, at $ 17,000 for the first half, compared to less than $ 13,500 per vehicle before 2020. Electric vehicle makers like China’s BYD are also taking on this market. Itochu Research Institute executive fellow Sanshiro Fukao told Nikkei Asia: “Although China maintains strong influence in Sri Lanka, Japanese used cars will continue to be the vehicle of choice over Chinese EVs as people think about asset value.”

The effects of this pickup in Sri Lanka’s used car market are seen impacting Japan’s domestic market as well. A report from Japanese used car marketplace Kuruma Erabi indicated that auction prices have risen for many models in the Japanese market since the ban was lifted, including Toyota’s Land Cruiser full-size SUV, a popular model in Sri Lanka. Fukao argued that although minicars and other small models were the most prevalent for exports to Sri Lanka, popularity is shifting to bigger models and EVs. He said that if trade-in values of those vehicles rise in Japan, it “could stimulate demand for car replacement in Japan’s market as well.”