According to a big data analysis of used car transactions conducted by Encar.com, Japanese car brands, which had been affected by the No Japan movement, are showing signs of recovery in the used car market, primarily driven by Toyota and Lexus.
An analysis of the 2023 used car sales figures for the five major Japanese brands—Toyota, Lexus, Honda, Nissan, and Infiniti—revealed a decrease of 3.14% compared to the previous year, indicating a reduced rate of decline. This marks a recovery level of approximately 77.09% when compared to the pre-No Japan year of 2018.
In 2019, the impact of the No Japan issue saw a drastic 24.13% decrease in the number of used cars registered for Japanese brands compared to 2018, with sales numbers also falling by 10.76%.
Despite this difficult situation, the performance of certain brands like Toyota and Lexus has stood out. Last year, used car sales for Toyota increased by 9.52% compared to the prior year, and Lexus saw a growth of 2.66%. Notably, the sales figures have rebounded to about 97.40% of those in 2018, indicating a recovery from the No Japan impact. Honda’s sales decline, which was recorded at 8.10% in 2022, has decreased to just 3.05% in the past year.
These brands have also seen a steady increase in used car registrations as new models were actively released. Used car registrations for Toyota increased by 8.38%, while Lexus saw a rise of 1.96% in 2023.
Model-specific analysis indicates that Japanese brands significantly influence the imported hybrid market, and they are also showing strength in the used car market. The used car sales for the Lexus ‘ES300h 7th Generation’ hybrid model surged by 44.87% compared to the previous year, driving the market. Toyota’s ‘Prius 4th Generation’ saw a sales increase of 22.74%, and the hybrid variant of the ‘Camry (XV70)’ rose by 28.15%. Honda’s ‘Accord 10th Generation’ hybrid also experienced a 29.10% increase in sales last year.
In contrast, Nissan and Infiniti, which have withdrawn from the South Korean market, have seen both the number of used car registrations and sales decline compared to the previous year. In 2023, Nissan’s registration numbers dropped by 15.29%, and sales fell by 15.78%, while Infiniti saw a registration decrease of 22% and a 20.50% drop in sales.
The Infiniti ‘Q50’, which was popular until 2020, is still being sold in significant quantities based on past inventory; however, annual sales figures continue to decline. Last year, the sales of the Q50 hybrid model decreased by 23.36%, while the diesel variant fell by 19.92%.
According to an Encar.com representative, “The used car market for Japanese brands, which had stagnated after the No Japan movement, shows some recovery centered around Toyota and Lexus hybrid models,” adding, “With major new model releases from Japanese brands last year, we expect transactions in the used car market to gradually increase, particularly for popular models.”
Encar.com is the largest automotive trading platform in Korea, with approximately 1.2 million used cars registered annually. They analyze the automotive and used car markets based on big data and track consumer trends, contributing to the innovative aspects of car ownership for consumers through online technology. To this end, they offer various consumer-centric services such as ‘Encar Diagnosis’, ‘Encar Warranty’, ‘Encar Home Service’, and ‘Encar Comparison Quotes’.
Jang Ji-sang daedusj@autodiary.kr