The Impact of the Russian Invasion of Ukraine on the Japanese Automotive Sector

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Ukraine war Japan automotive industry military conflict Russia invasion of Ukraine 2022 February cease of operations parts supplies Japanese automakers vehicle exports economic sanctions export volume of Japanese automobiles to Russia export volume of Japanese automobiles to Ukraine automotive production bases in Russia impact of the war in Ukraine Toyota Nissan Mazda Mitsubishi Isuzu Mitsubishi Fuso Truck and Bus Renault Sollers PSA Daimler Kamaz Rus Mercedes-Benz Trucks Vostok Fuso Kamaz Trucks Vostok Hino St. Petersburg Vladivostok Kaluga Ulyanovsk Naberezhnye Chelny Khimki Limited Liability Company "TOYOTA MOTOR" in Saint- Petersburg (TMR-SP) Nissan Manufacturing RUS LLC MAZDA SOLLERS Manufacturing Rus LLC PCMA Rus LLC JSC Isuzu Rus Daimler KAMAZ Rus LLC RAV4 Teana X-Trail Qashqai Murano Terrano Pajero Sport Outlander Canter plant ownership annual production capacity supply chain disruption suspension of shipment of parts part inventory procurement suspension of business operations discontinuation of vehicle production in Russia

Russia’s invasion of Ukraine at the end of February 2022 forced Japanese automakers to suspend manufacturing and business operations in Russia and Ukraine. All six Japanese automakers which manufacture vehicles in Russia halted operations in the beginning of March 2022 due to sanctions over Moscow’s invasion of Ukraine. Parts supplies to Russian plants and vehicle exports to the Russian market were discontinued as well. Sanctions are expected to have a serious impact on used vehicle exports from Japan to Russia. In 2021, Russia was the largest export destination for used vehicles from Japan. A total of 162,000 units were exported which accounted for 13% of all used vehicle exports from Japan.