Russian resellers snap up used cars in South Korea, China

The used car markets in South Korea and China are experiencing severe shortages due to a surge in demand from Russian resellers, driven by an impending increase in Russia’s recycling fee.

This spike in demand has left only a handful of popular models in good condition available in these Asian markets, according to Russian media reports.

In South Korea, for example, only two BMW X3 vehicles in acceptable condition were found on the market. BMW X5 models up to five years old are now entirely absent in both Korea and China.

The shortage is particularly acute among mass-market brands. KIA models aged 3–5 years, which previously maintained steady demand, now vanish from online listings within minutes. Recent data cited in the media suggest that listings for these cars have nearly disappeared due to the lack of supply.

Asian sellers quickly responded to the surge in demand by raising prices for popular models among Russians by an average of 20%.

Originally set to take effect on November 1, Russia’s Ministry of Industry and Trade postponed the introduction of new rules for calculating the recycling fee on foreign cars with engines over 160 horsepower. The changes will now come into force on December 1.

Russia’s First Deputy Prime Minister Denis Manturov explained that linking the recycling fee to engine power was intended to make locally produced cars in Russia more competitive compared to imports.

The current rush has caused major traffic jams at border crossings, significantly delaying the delivery of ordered foreign vehicles. Manturov stressed that if the new fee calculation method had not been postponed, thousands of Russians would have faced additional payments amounting to millions of roubles starting November 1.

He added that the decision aimed to protect Russians who had already ordered and paid for cars with engines over 160 horsepower but, for various reasons, were unable to bring them into the country before November 1.

However, experts cited in the article argue that the decision to increase the recycling fees was a misstep and could cost the Russian budget billions of roubles in lost revenue from imported vehicles.

By Nazrin Sadigova