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https://www.xataka.com/moviles/emiratos-esta-mayores-exportadores-coches-sola-fabrica-explicacion-esta-japon-se-llama-shaken

  • September 27, 2024
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There is a name that is often overlooked and explains very well why Japan has a high demand for high-end cars in the country: Shaken. The chain from

There is a name that is often overlooked and explains very well why Japan has a high demand for high-end cars in the country: Shaken. The chain from the moment a Japanese vehicle acquires a new owner until the same driver purchases a new “comrade” is fascinating and incredibly short in many cases. And it’s all because of an ITV.

Story. Shaken is the name given to vehicle inspection in Japan. The problem, as we will see below, is that after a few years of use its price becomes so excessive and exorbitant that a surprising chain begins when the Japanese driver buys a new vehicle and prices in places like the Arab Emirates begin to rise. The list of countries to which vehicles (or “parts”) are most exported is unusual and without a single factory.

Problem? Shaking should be done every two or three years, depending on the age of the vehicle. Three years after buying a new car, every two years after the fourth year, and every twelve months when the car is 10 years or older. A real hole in Japanese wallets.

Very expensive. We are talking about one of the strictest and most expensive controls in the world (for perspective, in Spain it costs around 50 euros). Costs include government fees, mandatory insurance, and possible repairs that can easily top $1,000 the first time (easiest and cheapest, since it’s “new” first time), or much more down the road, especially on older cars.

What’s more, what’s normal with older cars is that stringent ITV forces you to repeat operations, driving the final bill higher and higher because the recommended repairs to meet the standards are too high. In short, exorbitant numbers that lead to an awkward situation.

Sale and new car. Due to the high cost, vehicle owners prefer to sell their cars before encountering the next Shaker. We remember that these are not old cars, most often we are talking about vehicles that are three, four, five years old, which creates a very dynamic second-hand market.

Often these vehicles are exported to other countries such as New Zealand, Russia or African countries where maintenance prices and regulations are less stringent. On the Japanese side, this move also allows the country to maintain high demand for new high-end car production.

Arab Emirates. But if there is one place that is benefiting from this situation, it is none other than the United Arab Emirates, the main “junkyard” for Japanese cars, where many of these relatively new vehicles are sold and marketed as spare parts. as parts or scrap, even the “new” ones after rebuilding are all then destined for export from their free zones.

It’s a very lucrative business, as Japanese cars are renowned for their durability and quality and are particularly valued by Emirates and its customers.

The unlikely exporter is Emirates. The situation is such that by 2023 Emirates has consolidated itself as one of the main players in the car export market. Worldwide, the UAE ranked 20th in exports worth $7.04 billion in foreign sales. The most preferred destinations: Countries such as Iraq, China and Kazakhstan, which have caused a significant increase in vehicle demand from there.

Meanwhile, in addition to new cars, second-hand cars and luxury cars are also included in the export market, benefiting from the commercial advantages and low import rates offered by the free zones in the country.

From Japan to Dubai. Finally, Dubai stands as one of the favorite destinations in the incredible journey of Japanese cars, which originated in a factory in the country and whose parts were dispersed to various regions within a few years. Why? It is an important center in automobile exports not only due to its infrastructure and strategic location, but also due to its attractive tax policies that facilitate trade.

All this has allowed the UAE automotive market to develop, connecting Europe, Asia and Africa and becoming a reference point in global vehicle exports. A chain as surprising as it is improbable.

Image | RawPixel, Diego Delso

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Source: Xataka

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