![]() These trucks are also exported many countries include Japan due to Japanese domestic makers no longer officially selling them through authorized dealers there. One of them known as Alpha Automobile Co., Ltd. Unlike Japanese and Singaporean exports, the majority of Thailand's grey exports are of new vehicles and the market is dominated by two companies. The Toyota Vigo is the most exported vehicle by parallel exporters. Thailand is the third largest exporter of brand new and used right-hand drive cars after Japan and Singapore, because of that country's high-volume production of diesel 4x4 vehicles such as the Toyota Hilux Vigo, Toyota Fortuner, Mitsubishi L200, Nissan Navara, Ford Ranger, Chevy Colorado, and others. Many Japanese market Jeep Cherokees, for example, have found new use with rural mail carriers in the United States. It is actually because of these vehicles' RHD configuration that many of them are sent to LHD countries in the first place, for use as mail delivery vehicles. Some have even been exported to countries such as Peru, Paraguay, Russia, Mongolia, Yemen, Burma, Canada, and the United Arab Emirates, despite the fact that these countries drive on the right. Consequently, it is profitable to export them to other countries with left-hand traffic, such as Australia, New Zealand, the Republic of Ireland, the United Kingdom, Malta, South Africa, Kenya, Uganda, Zambia, Mozambique, Malaysia, Bangladesh and Cyprus. Japanese used vehicle exporting is a large global business, as rigorous road tests and high depreciation make such vehicles worth very little (in Japan) after six years, and strict environmental laws make vehicle disposal expensive. It is even possible for car buyers in the United Kingdom to buy right-hand drive cars in EU countries with right-hand traffic where left-hand drive cars are the norm. In 1998, the European Commission fined Volkswagen for attempting to prevent prospective buyers from Germany and Austria from going to Italy to buy new VWs at lower pre-tax prices pre-tax price is lower in Italy, as in Denmark, due to higher tax on cars. Grey imports are generally used vehicles, although some are new, particularly in Europe where the European Union tacitly approves grey imports from other EU countries. Right-hand drive vehicles are not allowed to be used in the country except in freeport zones, and are thus modified to be driven legally. Overview Ī Honda Stepwgn as seen in the Philippines, converted to left-hand drive. ![]() In some countries, such as Vietnam, the import of grey-market vehicles has largely been banned. Examples of such barriers include regulations preventing import or requiring costly vehicle modifications. In order for the arbitrage to work, there must be some means to reduce, eliminate, or reverse whatever savings could be achieved by purchasing the car in the lower-priced territory. Car makers and local distributors sometimes regard grey imports as a threat to their network of franchised dealerships, but independent distributors do not since more cars of an odd brand bring in money from service and spare parts. Grey import vehicles circumvent this profit-maximization strategy. Ĭar makers frequently arbitrage markets, setting the price according to local market conditions so the same vehicle will have different real prices in different territories. The synonymous term parallel import is sometimes substituted. Grey import vehicles are new or used motor vehicles and motorcycles legally imported from another country through channels other than the maker's official distribution system.
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