Grey Import Vehicle - Overview

Overview

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. 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. 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.

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. Consequently, it is profitable to export them to other countries with left-hand traffic, such as New Zealand, the Republic of Ireland, the United Kingdom, Malta, South Africa, Kenya, Uganda, Zambia, Mozambique, Bangladesh and Cyprus. Some have even been exported to countries such as Peru, Paraguay, Russia, Burma, and Canada, despite the fact that these countries drive on the right.

There have also been exports of used cars from Singapore, where cars more than ten years old are scrapped or exported. As a result, thousands of these vehicles are exported every year, making Singapore the second largest exporter of used right-hand drive cars after Japan.

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. The Toyota Vigo is the most exported vehicle by parallel exporters. Unlike Japanese and Singaporean exports, the majority of Thailand's grey exports are of new vehicles and the market is dominated by two companies.

Similarly, there are exports of left hand drive (LHD) used cars from Germany to countries in Eastern Europe, EU countries and LHD markets in West Africa. Some cars in the United States are sold only as export by insurance companies due to having been stolen and recovered or damaged in other ways.