Three New Regulations Concerning the Export of Used Cars and Used Automotive Parts from Japan

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Abstract:

1. Purpose
The trade of used vehicles and used automotive parts constitutes a global distribution system for the reuse of automobiles and components. Therefore, it can be considered one of the key elements for establishing a circular economy for automobiles.
In 2025, Japan exported 1.7 million used vehicles. Since 2012, Japan has consistently exported over 1 million used vehicles annually (according to the Used Vehicle Exporters Cooperative Association). On the other hand, no clear statistical data exists for the export of used automotive parts. However, it is estimated that approximately 300,000 tons of used engines alone have been exported per year since 2020 (Asazuma 2025). This indicates that a large-scale automotive reuse distribution system originates from Japan.
However, in recent years, Japan has successively enacted regulations impacting these exports. The primary ones are the following three:
Regulation 1: Strengthened regulations on truck drivers' working hours
Regulation 2: Strengthened regulations on the operation of automobile dismantling yards
Regulation 3: Strengthened requirements for issuing residence visas to foreign operators
Regulation 1 is based on the “Work Style Reform Laws” enacted by the national government and began application in April 2024. In Japan's domestic transport market, long-distance transport by truck is the primary means. Even for long-distance transport between 501 and 700 km, trucks handle approximately 60% of the volume (2021, Ministry of Land, Infrastructure, Transport and Tourism National Pure Flow Survey of Freight). Consequently, the long working hours of truck drivers have been a longstanding issue, and these regulations aim to address it.
Regulation 2, on the other hand, is a regulation imposed by local governments such as prefectures and municipalities. It was first enacted as an ordinance in Chiba Prefecture in April 2015 Subsequently, several other local governments have enacted similar ordinances. These regulations emerged as some businesses faced doubts regarding safety management at their facilities and compliance in commercial transactions.
Regulation 3 is based on the “Ministerial Ordinance Establishing Standards for Article 7, Paragraph 1, Item 2 of the Immigration Control and Refugee Recognition Act,” which is related to the “Immigration Control and Refugee Recognition Act” enacted by the national government. It was amended and enacted in October 2025. This amendment includes raising the amount of capital required when a foreign national seeks to obtain a residence visa for business purposes. As many foreign businesses are involved in the export of used vehicles and used automotive parts, an impact is anticipated.
This report clarifies the impact of these regulations on used car and used auto parts exports. Furthermore, it aims to examine the anticipated future impact.

2. Methodology
The following four methods will be employed:
① Statistical analysis
② Analysis of interviews with exporters
③ Analysis of dismantler location trends
④ Analysis of newspaper reports
These methods will be used to examine the impact of the three regulations. Specifically, methods ① and ② will be used for Regulation 1, methods ③ and ④ for Regulation 2, and methods ② and ④ for Regulation 3.

3. Findings
Regulation 1 has made long-distance truck transport more difficult. Consequently, there is a stronger tendency to shorten the transport distance to ports for exported used vehicles, influencing the choice of ports used for export. Regulation 2 has expanded by retroactively tracking the location trends of dismantlers, suggesting that these location trends are influencing local administration. Regulation 3 particularly impacts foreign exporters holding residence status through the Business Manager visas, jeopardizing the business continuity of small and medium-sized enterprises.

4. Significance
This study clearly demonstrates that various regulations—labor regulations, operational regulations, foreign resident regulations, etc.—impact the distribution channels for reusing automobiles and auto parts. It demonstrates that attention must be paid to regulations other than environmental regulations to build a circular economy for automobiles.

5. References
・Yutaka Asazuma, “Surviving the Turning Point in the Automotive Recycling Industry: Declining ELV Numbers and Their Background (2),” JAERA NEWS LETTER vol.193, pp.2-3, 2025