Distribution of Imported Cars

Import Flow

Vehicles are either (1) directly imported from the overseas manufacturers (official import) or (2) imported through overseas dealers (parallel import).
The official import is only for new cars, but parallel import is for both new and used cars.

Distribution Channel

Imported cars are distributed either (A) through importers’own sales channels or (B) through distributors or dealers with sales networks. Most importers are wholly-owned subsidiaries in Japan of manufacturers of the US, Europe and South Korea.
Also, as parallel importers have no standing agreements with manufacturers, they purchase cars for import from overseas dealers and other channels.

Flow of Passenger Car Import and Distribution Channel

 
 
 

Procedures from Import to Registration

Since the Japanese car market is the second largest to the U.S., it has a great significance for foreign manufacturers.
Therefore,manufacturers establish a special production department for models that are likely to be sold substantially in Japan so that they can export vehicles meeting Japanese standards and market requirements.
Finished vehicles are transported to a port for shipping with special coating to protect the body from dust and salty breeze during transportation.
It takes about 2 weeks for a ship loaded with vehicles to sail from the U.S. and a month and a half from Europe to Japan.
These vehicles are transported to a maintenance workshop after the customs clearance procedures are completed in about a day. (In some cases, after the customs clearance, vehicles are left in a port for an arrangement of transportation or due to a change in the schedule.)
After the vehicles are brought in at the maintenance workshops of importers, they check and repair scratches made in transit, make minor adjustments, exchange parts and control the quality of the product.
First, they remove waxed coating (protection for sea breeze and dust while shipping) from the vehicles with a steam-washer and then, according to the Japanese quality standards chart, check out scratches, finish their interior and exterior, fit doors and trunks and adjust the protuberant difference between a bonnet and fender, and between a fender and door.
Such adjusting, repairing and polishing are made in accordance with the check-up results.
After a user buys a vehicle, which is merchandised through the above process (certified in accordance with the Vehicle Certification System), the vehicle is inspected at the Transport Branch office according to the Vehicle Inspection System and registered on the license registration file after paying taxes.
Then a number plate is issued and sealed. The vehicle is allowed to run on public roads after all those procedures are completed.