< Back to all clusters
[BUSINESS] · Japan · 2 sources

started · updated

Japan car owners discard vehicles after 5–7 years

In Japan, many private car owners choose to scrap or export their vehicles after only five to seven years of use, despite the high durability of domestic brands like Toyota, Honda, and Nissan. Data from the Japan Automobile Federation (JAF) and the Japan Automobile Manufacturers Association (JAMA) indicates that many of these vehicles are discarded with relatively low mileage, often between 50,000 and 70,000 km, as average annual usage is only about 8,000 to 10,000 km.

A primary driver for this short lifecycle is the ‘Shaken’ system, Japan’s rigorous mandatory vehicle inspection regime. While new cars are exempt for the first three years, owners must undergo inspections every two years thereafter. These inspections involve significant costs, typically ranging from 100,000 to 200,000 Yen, covering inspection fees, weight taxes, and compulsory insurance. As vehicles age, inspection standards become stricter, causing repair costs to rise sharply, which often makes keeping an older car economically impractical compared to replacing it.

Entities

Honda · Japan Automobile Federation · Japan Automobile Manufacturers Association · Nissan · Toyota