Background Paper – Japan Automobile Imports Association, Distribution of Imported Cars

Import Flow

 Passenger car import is either (1) direct import from the overseas manufacturer (manufacture agreement import) or (2) import through overseas dealers (parallel import).

Manufacture agreement import includes only new cars, but parallel import includes both new and used cars.

Distribution Channels

The most common types of distribution channel for new cars include (A) import of cars directly from the manufacturers by dealers with nationwide sales networks, (B) purchase of cars from the importers, which are then sold by agencies and local representatives through distributors, and (C) car sales through nationwide, directly-managed dealer offices and branches as well as through agencies and local representatives.

In recent years, foreign manufacturers have founded increasingly their affiliated companies as importers in Japan.

Also, parallel importers have no representative agreements with manufacturers, therefore, they purchase cars for import from overseas dealers, etc.

Procedures from Importation to Registration

Generally, affiliated companies and Japanese importers that have a direct contract with manufacturers, firstly place a temporary order for a year, then they place an actual order to the head office depending on the demand in Japan.

Since the Japanese car market is in a second place following the American one, it has a great significance for foreign manufacturers. Therefore, manufacturers establish a special production department for models that have a prospect of large sales in Japan so that they can export vehicles which meet Japanese regulations and suit the actual situation of transportation and Japanese marketing.

Finished vehicles are transported to a port for shipping with coating to protect the body from dust and salt breeze in transit.

It takes about 2 weeks for a ship loaded with vehicles from the U.S. and a month and a half from Europe to Japan. Those vehicles are transported to a maintenance workshop after the customs clearance procedures are completed, which takes about 1 day. (In some cases, after the customs clearance procedures, vehicles are left in a port due to an arrangement of transportation and some change on the schedule.)

After the vehicles are brought in the maintenance workshops of affiliated companies and importers they check and repair scratches made in transit, make minor adjustments, exchange the parts and control the quality of the product. Firstly, they remove the waxed coating from the vehicles by steam-washer and then, according to the Japanese quality standards chart, check out scratches, finish of the interior and exterior, fitting of the doors and trunks and protuberant difference between bonnet and fender, and fender and doors. Adjusting, repairing and polishing is made in accordance with the above check-up results.

After a user buys a vehicle, which is merchandised through the above process (approved in the Vehicle Certification System), the vehicle is inspected at the Land Transport Bureau according to the Vehicle Inspection System and registered on license registration file after paying taxes. Then a numberplate is issued and sealed. The vehicle can be driven on public roads after all those procedures are completed. 

Since the Japanese automobile market is second largest to that of America, it has a great significance for foreign manufacturers. Therefore, manufacturers establish the special production department for the models that have a prospect of large sales in Japan so they can export the vehicles which meet Japanese regulations and suit the actual situation of transportation and marketing of Japan. 　Completed vehicles are transported to a port for shipping with a coating to protect the body from dust and salt breeze in transit.

A ship loaded with vehicles takes about 2 weeks from the U.S. and a month and a half from Europe to reach Japan. Vehicles are transported to a maintenance workshop after the customs clearance procedures are completed, which takes about 1 day. In some cases, vehicles after the customs clearance procedures are kept in custody of a port for arrangement of transportation and schedules.

After the vehicles are brought in the maintenance workshops of affiliated companies and importers they check and repair the scratches made in transit, make minor adjustments, change the parts and check the quality of the product. Firstly, they remove the said coating on the vehicles by steam-washer and then, according to the Japanese quality standards chart, check for scratches, finish of the interior and exterior, fitting of the doors and trunks and protuberant difference between bonnet and fender, and fender and doors. Adjusting, repairing and polishing is done in view of result of above check-ups.

After the user buys a vehicle, which is merchandised through above process and approved in the automobile certification system, the vehicle is inspected at the Land Transport Bureau according to the Motor Vehicle Inspection System and registered on license registration file after the payment of taxes. Then the numberplate is issued and sealed. The vehicle can be driven on public roads after all these procedures are completed.

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