Japan Used Car Market Expected to Reach USD 123.16 Billion by 2033 - IMARC Group

Japan Used Car Market Statistics, Outlook and Regional Analysis 2025-2033

The Japan used car market size was valued at USD 66.67 Billion in 2024, and it is expected to reach USD 123.16 Billion by 2033, exhibiting a growth rate (CAGR) of 6.38% from 2025 to 2033.

Collaborations in the automotive sector are stressing customer-centric methods, with new partnerships concentrating on strengthening stakeholder relationships in Japan. These initiatives seek to innovate and improve the whole automobile experience while also addressing changing customer requirements and promoting long-term industry growth. For example, in May 2024, ITOCHU Corporation, headquartered in Minato-ku, Tokyo, and ITOCHU ENEX Co., Ltd. announced the establishment of WECARS Co. Ltd., in association with J-Will Partners Co., Ltd., through the acquisition of all businesses from BIGMOTOR Co., Ltd., along with its subsidiaries.

Moreover, due to the scarcity of new automobiles, demand for old cars has elevated, causing market prices to rise. Buyers are increasingly turning to pre-owned automobiles as a practical option, which is fueling development in the used car market in Japan. For instance, in March 2024, NHK reported that the semiconductor shortage limited the overall new car availability, leading to a significant rise in used car prices across Japan. USS Co., a leading used-car auction firm, noted that in February 2024, the average price for secondhand vehicles exceeded, marking a 20% increase from the previous year. Furthermore, Japan's used car industry is capitalizing on its reputation for quality and dependability to fulfill expanding worldwide demand. Exporters prioritize automobiles with low mileage and excellent fuel efficiency to appeal to ecologically aware consumers. Additionally, the rising aftermarket for old automobiles in Japan offers considerable prospects for parts suppliers and service providers. Also, purchasers are increasingly drawn to SUVs and hybrid vehicles for their versatility and economy. For example, Japanese secondhand automobiles such as the Toyota Prius and Honda CR-V are in high demand in other countries. Exporters work with worldwide dealers to provide automobiles that match local tastes, including small cars for urban regions and 4WDs for harsh environments. These collaborations guarantee that Japanese secondhand automobiles remain a popular choice internationally owing to their longevity and cost-effectiveness.

Japan Used Car Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include the Kanto region, Kinki region, Central/Chubu region, Kyushu-Okinawa region, Tohoku region, Chugoku region, Hokkaido region, and Shikoku region. A diverse consumer base across these regions is stimulating the market.

Kanto Region Used Car Market Trends:

In the Kanto region, especially Tokyo, people are choosing eco-friendly used cars like hybrids and electric vehicles. Urban environmental policies encourage automobiles such as the Toyota Prius and Nissan Leaf. Dealerships are expanding their selection of fuel-efficient and low-emission cars to meet the growing demand for sustainable transportation in the region.

Kinki Region Used Car Market Trends:

Hybrid automobiles are increasingly popular in the Kinki region, which includes Osaka, Kyoto, and Kobe. Models such as the Toyota Aqua and Honda Fit Hybrid are ideal for fuel-conscious urban drivers. Dealerships in the area are increasingly selling these vehicles, appealing to consumers who value cost, practicality, and low emissions in their daily commute.

Central/Chubu Region Used Car Market Trends:

The Central/Chubu region, which includes Nagoya, is a major export market for secondhand vehicles. The Toyota Corolla and Honda Fit are popular in overseas markets, including Southeast Asia and Africa. Dealers collaborate closely with international purchasers to provide high-quality variants, bolstering the region's position as a major exporter of used Japanese automobiles.

Kyushu-Okinawa Region Used Car Market Trends:

SUVs and off-road vehicles are in great demand in the Kyushu-Okinawa region, which has a diversified topography and outdoor attractions. Both locals and visitors choose popular vehicles such as the Toyota Land Cruiser and Subaru Forester. Dealerships in Fukuoka and Okinawa carry automobiles appropriate for the region's tough topography and driving requirements.

Tohoku Region Used Car Market Trends:

Heavy snowfall is prevalent in the Tohoku region, which is augmenting the need for four-wheel-drive and all-wheel-drive cars. Vehicles such as the Subaru Outback and Mitsubishi Delica are regarded for their dependability in cold conditions. Dealers in places including Sendai prioritize selling these cars to fulfill the demands of drivers in snowy and slippery conditions.

Chugoku Region Used Car Market Trends:

In the Chugoku region, particularly around Hiroshima, family-friendly cars such as minivans are popular. Toyota Sienna and Honda Stepwagon models are well-known for their roomy interiors and practicality. Local retailers emphasize these vehicles, catering to families seeking dependable transportation for both daily use and lengthy excursions.

Hokkaido Region Used Car Market Trends:

Hokkaido's severe winters and extensive distances necessitate the use of long-lasting, fuel-efficient cars. Popular models for dealing with snow-covered roads and rough terrain include the Toyota Hilux and Suzuki Jimny. Dealers in Sapporo and other areas specialize in these cars, offering dependable mobility for residents in this challenging environment.

Shikoku Region Used Car Market Trends:

In Shikoku, inexpensive and compact automobiles are popular, particularly in rural areas with limited public transit. Models such as the Honda Fit and Toyota Vitz are practical and cost-effective choices for daily commutes. Dealers in locations including Matsuyama guarantee that these vehicles are easily accessible to satisfy the mobility demands of the local population.

Top Companies Leading in the Japan Used Car Industry

Some of the leading Japan used car market companies have been provided in the report. Market participants pay attention to diverse inventories of well-maintained cars, capitalizing on Japan’s reputation for quality manufacturing and various stringent inspection standards. Collaborations among auction platforms, dealers, and export networks aid in streamlining operations and broadening market access. For instance, Japan exported around 39,000 units to Kenya and 47,000 used cars to Tanzania, in November 2024, emphasizing the popularity of Japanese automobiles owning to their reliability and advanced technology.

Japan Used Car Market Segmentation Coverage

• Based on the vehicle type, the market has been classified into hatchbacks, sedan, sports utility vehicle, and others. Hatchbacks are compact, ideal for navigating narrow city streets, and are highly preferred by urban commuters and small families. Sedans represent the comfort, style, and reliability blend of the used car, attracting professionals and families looking for a spacious yet sophisticated option. Sports utility vehicles indicate a shift in customer preferences for SUVs that combine flexibility and performance. They offer plenty of space and superior safety, making them appealing to adventurers and families alike.
• Based on the vendor type, the market has been categorized into organized and unorganized. Organized vendors offer buyers transparency, reliability, and professional services. These dealerships often provide certified pre-owned vehicles with warranties and detailed inspection reports. Unorganized dealers cater to those looking for low-cost alternatives and flexible negotiation terms.
• Based on the fuel type, the market has been divided into gasoline, diesel, and others. Gasoline-powered vehicles are available everywhere and are cheaper to purchase. They are preferred for their quieter engines, smoother operation, and compatibility with Japan's urban-centric driving needs. Diesel-powered vehicles hold a notable share in the market, especially in SUVs and commercial vehicles.
• Based on the sales channel, the market is classified into online and offline. Online sales channels allow buyers to compare prices, view detailed vehicle information, and even access financing solutions from the comfort of their homes. Offline sales allow personal contact, generating trust and confidence in making a purchase.

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