Category: ‘Car Importing’

New NZ Import Rules – Electronic Stability Control

Posted by Stephen On Tuesday, January 26th, 2016

Importers in New Zealand, take note: New rules are being phased in which will change the way you will buy vehicles. So what are these new rules, and will they affect you?

First of all, these rules are being gradually implemented. This is different to past changes in NZ vehicle import rules, which resulted in all vehicles over a certain age suddenly being ineligible.

Electronic Stability Control

Secondly, the additional criterion is not going to be as easy to spot as the emissions code changes of the past have been. It is easy enough to tell whether a car has a 2-digit emissions code (like UA) or a 3-digit code (such as DBA), but for the new rules, it will be the presence or absence of Electronic Stability Control that is the determining factor.

The schedule for used vehicle imports is like this:

  • Used class MC vehicles (four-wheel-drive SUVs and off-road vehicles) inspected at the border from 1 March 2016.
  • Used class MA vehicles (passenger cars) with engine capacity greater than 2 liters inspected at the border from 1 March 2018.
  • All other used class MA, MB and NA light passenger and goods vehicles inspected at the border from 1 March 2020.

So, first up will be what they are calling MC vehicles. The definition of what constitutes an MC vehicle seems rather vague. After all, there are all sorts of vehicles that seem to be in a gray area between the SUV and regular passenger car classification. The technical definition is here, but is so detailed that I think it is best to err on the side of caution and just assume any vehicles with serious offroad intentions are covered. For example, a Subaru Forester does not seem to be your typical SUV, and yet it does appear on this list with other SUVs.

MC class vehicles will be inspected “at the border” (which we assume is upon landing in NZ, rather than the NZTA inspection on the Japan side) from March 1, 2016. If you are thinking of buying a non-compliant  SUV, then you really need to get this done as quickly as possible, as you don’t want to find that pressure on shipping means your vehicle does not make the March 1 deadline.

The next question is how you are going to be able to find these cars? There are so many different variations for what NZ is calling Electronic Stability Control, but since this feature is so rarely mentioned on Japanese car auction inspection reports,  how will you be able to tell if this crucial feature is present or not?

In our opinion, the best method is going to be for us to contact the manufacturer with the chassis number to ask them directly. We recommend that customers get bids in a day early so that we have time to get this information. Of course, many earlier 4WD SUV models that have compliant emissions codes will no longer be eligible for import, so we recommend customers do not look at 4WD SUVs from before 2011.

(An interesting loophole is that this only applies to 4WD SUVs. This means that 2WD SUVs are not affected, so if your customer isn’t a farmer, it may be worth trying to persuade him or her to go for the same vehicle in 2WD format.)

The next tranche of vehicles after the MC class will be the MA class vehicles, which are any kind of passenger cars with engines over 2 liters. This rule comes into play on March 1, 2018. Again, there is an interesting opportunity to find loopholes here. Remember that cars that are broadly classified as 2 liter cars often have a capacity that is just under 2 liters. Cars like the 4th generation Toyota Prius that has a capacity of 1797 cc may well find a bump in popularity as a result.

Once we get to March 1, 2020, the loopholes will close, and these requirements will apply to all vehicles. However, I expect by that time most of the used cars of an age that customers in New Zealand would be interested in will have this feature as standard anyway.

As a final comment, I would like to note my frustration as an exporter and the frustration of NZ importers. This rule is not transparent or easy to comply with. The emissions code rules of the past have been simple to verify, but the presence or absence of ESC is not. A much fairer and simpler rule update would have been to move forward the date for the earliest vehicles to, say 2010. Moving this date forward for all vehicles at the same time would have had a similar net benefit in terms of enhanced safety systems (not just ESC, but also airbags, pre-crash braking etc), but would be much easier to implement.

One can only be suspicious that the complexity of the new rules has more to do with hindering the effectiveness of the import industry to protect the players in the new car sales business, than it does with actually improving safety. After all, if safety was the real concern, how come 2WD SUV variants (that surely have a higher center of gravity than their 4WD equivalents) are exempt until 2018, even though they are actually as or more prone to roll over in “moose test” scenarios.

References:

Please note:

We do our best to keep abreast of all the changes in the import rules for the countries we send vehicles to. However, at the end of the day it is your responsibility as the importer on the ground in your country to make sure you understand and comply with these rules. If you tell us to buy a car and send it to you, we will.


Japanese Car Auction Find – 2014 Volkswagen Golf GTI

Posted by Stephen On Monday, February 16th, 2015

The other day we discussed the possibility of a revival of Mazda’s MPS performance brand, starting with a possible Mazda2 MPS that could make an appearance sometime in the next few years. When/if that car comes to fruition, it will compete with sporty hatchbacks like the Ford Fiesta ST and the Volkswagen Golf GTI. So, today we’re showcasing one of the latter up for auction in Japan. It’s a 2014 model year, pictured below:

2014 Volkswagen Golf GTI

Let’s start with the basics. This is an affordable five-door hatchback with a turbocharged 2.0L four-cylinder petrol engine. The powertrain offers a vigorous 217hp system output and 207 lb-ft of torque. That sporty engine is configured for front-wheel-drive and paired with either a 6-speed manual or, in this case, an upgraded 6-speed automatic transmission. It also gets a dual-clutch transmission with a limited-slip differential, complete with paddle shifters mounted on the steering wheel.

Since this model uses the automatic transmission, you’ll enjoy an improved fuel economy of 32 mpg on the highway and 24 mpg in the city… Not bad at all for such a punchy little sports car. The Golf GTI is still popular even after all these years due to its incredible on-road handling, thanks in large part to its sport-tuned suspension and brakes.

2014 Volkswagen Golf GTI rear

Despite a relatively minimalist design, that red accent on the grille, the 18-inch alloys and the ever-so-slight rear spoiler still help the car stand out on the road.

For your information, this same car won the 2013-2014 Japan Car of the Year award to become the first-ever international import to receive that particular accolade.  Quite an achievement!

Unfortunately, we don’t have any interior pictures for this particular Japanese car auction find. However, since it’s a Volkswagen, you can rest assured that you’ll enjoy plenty of cabin amenities. For example, heated seats, automatic air conditioning and Bluetooth connectivity all come standard, along with a booming audio system with an auxiliary input and built-in iPod cable. It also offers you a surprising amount of cargo space given the car’s relatively small size.

All in all, 2014 was a great model year for the Volkswagen Golf GTI. This particular auction find is in great shape with an overall rating of 4.5. Overall, the Golf GTI is a relatively affordable premium hatch with a huge fun factor and an excellent interior. It may not have the same aesthetic appeal as Mazda’s new 2, but it definitely holds up on the performance front. To learn more, keep reading below the auction sheet:

2014 Volkswagen Golf GTI auction sheet

“Interior A, exterior condition B, first registered February 2014, GTi model, FAT, AAC, official dealer RHD import, idling stop, cruise control, xenon lights, original navigation system, ABS, airbag, original AWs, power steering, power windows, rear view reversing camera, spare smart key, scratches under bumpers, minor scratches on exterior paintwork, front windscreen stone scratches, marks as per map”


Toyota Mirai to Be Hand-Built Through 2017; Already 200 Sold

Posted by Stephen On Tuesday, December 2nd, 2014

Barely more than a week after the Toyota Mirai’s worldwide debut at the 2014 LA Auto Show, the Japanese automaker has already received 200 advanced orders for their all-new hydrogen fuel-cell vehicle. Not only that, they’ve also revealed that the Mirai will be built in the same factory that built the limited edition Lexus LFA supercar.

Toyota Mirai Already Selling Out

2016 Toyota Mirai FCV

Toyota only intends to sell a meager 3,000 Mirai units in the US units by the end of 2017, and only 700 of those will hit dealership floors in 2016 (the model’s first full year in the US). Toyota’s VP of domestic sales, Masamoto Maekawa, told Automotive News that most of those orders are going to government and corporate fleets, but a few commercial orders have been placed too.

There are two big reasons that Toyota is slow-rolling their commercial FCV:

First, they’d rather err on the side of over-demand than over-supply. This is a very big venture for them, and in situations like this, a little bit of exclusivity is a powerful long-term marketing tactic.

Second, Toyota intends to manufacture only a maximum of 10 units per day through 2017, and each will be built completely by hand in the most advanced manufacturing plant at the Japanese titan’s disposal. Which nicely brings us to…

Toyota Mirai to Be Built at LFA Works

2012 Lexus LFA Supercar

Lexus would tell you that their specialty LFA Works facility is where dream cars are made, and in the case of the Toyota Mirai, they’re absolutely right.

The plant originated in 2010 when Lexus first began manufacture of their limited-edition LFA supercar, which was built completely by hand. Only 500 of the carbon fiber, V10-powered sports cars were manufactured over 2 years, which is a rate of less than one per day. Since the LFA project’s expiration in 2012, the plant has been mostly used for hand-built Lexus F Sport Roadbikes, which took advantage of the facility’s advanced carbon fiber capabilities.

Now, the advanced craftsmen at LFA Works have a new task: to build every single Toyota Mirai by hand. Eventually, Toyota hopes that their LFA Works engineers will be able to output a steady 10 units per day, but in the meantime, some production delays are expected.

If you were to order a Toyota Mirai today, you wouldn’t get it until mid-summer of 2016 at the earliest. And that date is only moving backwards as they get more and more fleet sales. Remember, 200 units might not sound like much, but that’s over the span of one week since the car’s LA debut, and two weeks since Akio Toyoda introduced us to the Mirai via video.

Honestly, though, we are perfectly happy with some production delays. The Lexus LFA was one of the best cars – and one of the coolest – that Toyota ever built. If those same masters of the automotive craft are to build every single Toyota Mirai for the next three years, all the more reason to get on-board now!


Japan’s Used Car Exports Holding Steady Despite Strong Yen

Posted by Stephen On Thursday, August 11th, 2011

Integrity Exports buys cars at Japan’s used car auctions for export around the world, and one thing that has made this market particularly tough has been the exceptionally strong Yen levels in 2011. Let’s put it this way: I first lived in Japan in 1994, and since then it has been a good rule of thumb that the Yen rate would typically oscillate around the 110 Yen to the US Dollar level. In the mid-2000s it did get up to 120 Yen or so, but since the financial crash in 2008, the rate has been getting steadily worse. Right now it is around 77 Yen to the Dollar – a long way from that high. The Yen has also been very strong against other currencies as well.

However, despite this, the latest figures showing numbers of used vehicles deregistered for export are holding up exceptionally well: Overall figures are 1.8% higher to date than at the same time last year. Also deregistrations in July are up 33.2% over the numbers for June. Clearly there is much to interest buyers around the world Japan’s used cars that goes beyond simple price factors.

It is also interesting to see how the different manufacturers fair in terms of popularity. In this there is really no contest: It would be fair to say that not only is the car in front a Toyota, but that it is really way in front. Clearly importers of used cars around the world have a strong preference in this regard.

Maker Regular Passenger Vehicles Small Passenger Vehicles Total Share
Toyota 9631 20392 30023 57.36%
Nissan 2226 3487 5713 10.92%
Honda 1813 2642 4455 8.51%
Non-Japanese Makes 3627 503 4130 7.89%
Mitsubishi 1447 1176 2623 5.01%
Mazda 1269 1110 2379 4.55%
Subaru 919 481 1400 2.67%
Suzuki 216 1042 1258 2.40%
Daihatsu 1 253 254 0.49%
Isuzu 100 4 104 0.20%

If you are interested in getting used cars from Japan’s car auctions, please contact us here or get a free 2-week guest pass to the car auctions here.

Source: Japanese Government data supplied by JUMVEA


Zimbabwe Thwarts Citizens’ Dreams: Moves to Tighten Import Laws

Posted by Stephen On Tuesday, June 14th, 2011

While the talk of a complete ban on imports of cars from Japan to Zimbabwe seems a little exaggerated, by restricting these imports to cars which are a maximum of 5 years old Zimbabwe will have some of the strictest import regulations in the African continent.

If the government is really worried about the quality of these used cars, they could have easily implemented similar procedures as Kenya, which requires that cars pass the JEVIC inspection before shipping from Japan.

Although Japanese car exporters will suffer if these restrictions are imposed, the real victims of these laws will be poorer Zimbabweans, such as Mathew Marufu:

“For Mathew Marufu, who has a disabled 10 year-old son, owning a second hand Japanese car has been an ‘answer from God’.

“My son has to travel across town to a special school for disabled children and it was a nightmare these past years to take him there. You know in Zimbabwe we have no reliable public transport and also if one uses it it’s not friendly to the disabled,” Marufu said.

He bought a second hand; imported Japanese car for 3,000 dollars and it has changed his family’s life. “So this second hand car … has helped my family in a huge way, my son can now go to school comfortably and never get to miss any lesson.”

It is people like Mathew, or primary school principal George Tigere, who will no longer be able to afford to gain personal mobility in the future, according to the report at allafrica.com.

Given that this news story goes on to explain how much customs duty these imports generate for government coffers, it seems clear that the issue is not one of lost revenue either. No, it seems much more likely that the real issue is that the ruling class and wealthy upper crust of Zimbabwe’s society want to maintain their distance from the vast majority of the population under them:

“Over the last four years the importation of cheap second hand cars from Japan has meant that cars are no longer just for the wealthy in a country where unemployment is as high as 90 percent.” (Emphasis mine)

Incongruously, the alleged impetus behind these new regulations are environmental reasons and safety:

“According to the environment ministry, Japan, which has strict carbon emissions laws, has created a massive industry in second hand car exports to poor third world countries like Zimbabwe.

“A greater number of these Japanese cars have been banned on the roads in their original country with Zimbabwe turning into their dumping site. It’s up to us to aggressively stand up against such kind of exploitation. We have a duty to save lives, protect ourselves and our environment,” said Nhema.”

Well, if you know anything about how things work in Japan, you will know right away that these cars have not been “banned” in Japan. If they had been “banned on the roads”, then they could not have been exported as they would not have had the correct paperwork to do so. How could you deregister a car for export if that car was “banned from the road” and, therefore, not registered in the first place? Clearly, this is a logical fallacy.

The reason there is a strong demand for these exported used Japanese cars is very simple: They represent better quality at a better price than anything that the consumer can source locally. After all, why would you go to all the trouble of getting a car from the other side of the world, pay to have it shipped and then pay duty when it enters the country, when you could just go down the street and get a better, safer, cleaner car for the same amount of money or less? It is the middle class of Zimbabwe whose aspirations drive this business.

Of course, any cars imported into Zimbabwe would have had to undergo regular shaken (roadworthiness) inspections in Japan. These tests cover both safety aspects and emissions, so it is clearly highly unlikely that there are smoke-belching death-traps being imported into Zimbabwe anyway.

The only point I will have to concede to Mr. Nhema is this: Yes, if more people own cars in Zimbabwe, then this will clearly result in higher CO2 emissions than their other alternative means of personal transportation… walking. But if this is the argument, then the minister should take measures immediately to ban motor vehicles of all descriptions, whatever their origin.

At Integrity Exports, we are happy to comply with whatever rules and legislation our customers’ countries require us to. So, if Zimbabwe does implement these changes to their import laws, of course we will be happy to comply.

However, we would like to submit that it is the Zimbabwean people who will suffer most when these new import laws are introduced, and we call on the government of Zimbabwe to reconsider these regulations. In particular, we submit that if the government is genuinely concerned about the quality of the used vehicles being imported, then they should require a JEVIC compliance certificate just as Kenya does.