Japanese carmakers look to increase imports of US built vehicles back to Japan
Japanese OEMs are increasingly sourcing vehicles from overseas plants for sale at home, reflecting shifting trade rules, cost pressures and manufacturing strategies. From India and Thailand to potential US imports, the trend highlights changing global production logic.
In 2003, Toyota exported just over 14,000 Avensis vehicles from its UK factory to Japan. Nearly 17,000 went in 2004, after which exports to Japan dwindled to 75 in 2018 when production of the Avensis finished. Over the period just over 70,000 UK-made Avensis cars made it to Japan, a tiny proportion of the nearly two million Avensis vehicles made during the model’s UK manufacturing lifetime. UK-made Avensis cars achieved a certain notoriety and kudos with Japanese consumers, but this export programme was, in reality, insignificant. The import market in Japan has, in the main, consisted of European premium brands, although there are signs this is changing. In recent years, Suzuki and Honda have used India as a low-cost supply point for small SUVs for Japan. Nissan and Mazda meanwhile use Thailand as a source for some models for Japan. Now, some Japanese vehicle companies – notably Toyota – are planning to widen the reverse import model, this time using US-made vehicles.
In December 2025, Toyota confirmed it would import three models, the Camry sedan, Highlander SUV and Tundra pick-up from the US to Japan
Responding to new trade rules
The choice of India, or Thailand, as a supply point for the Japanese market has a wider industrial logic, as discussed below. The decision by Toyota to source three vehicles for Japan from its US factories is rather different; it is part of the Japanese national response to tariffs imposed on Japanese (and other countries’) imports into the US by President Trump. Whether the decision to import vehicles from the US into Japan turns out to be anything more than a tokenistic gesture remains to be seen.
In December 2025, Toyota confirmed it would import three models, the Camry sedan, Highlander SUV and Tundra pick-up from the US to Japan. Honda and Nissan are also reported to be considering importing vehicles from the US to Japan but have to confirm plans. How successful these vehicles will be in Japan will be interesting to observe; the Highlander and Tundra are much bigger vehicles than most SUVs or pick-ups sold in Japan. Moreover, and despite the dominance of Japanese branded pick-ups across the world, the Japanese pick-up market is much smaller than markets outside Japan. As well as considerations surrounding market suitability and consumer interest in these vehicles, for imports to succeed in Japan some changes to the regulatory environment will be required.
Under pressure from the US in trade negotiations, Japan’s government has opened – or plans to open – various markets by simplifying regulatory issues surrounding imports
Changing regulatory requirements for imported vehicles
Japanese rules on imports and the safety standards they are required to meet have frequently been cited as barriers to entry. Under pressure from the US in trade negotiations, Japan’s government has opened – or plans to open – various markets by simplifying regulatory issues surrounding imports. Now, rather than US-made vehicles having to undergo specific physical testing to ensure compliance with safety rules, the Japanese transport ministry is understood to considering a special exemption which would allow US-made vehicles to be certified as safe for sale in Japan simply through a document review; the need for specific testing as currently required should be dispensed with early in 2026.
In addition, Toyota is reportedly considering opening its domestic sales network to allow US brands – e.g. Ford, GM or Jeep/Dodge/Ram – to be sold through Toyota dealerships. And while this is being considered, Nissan is said to evaluating the Japanese market potential for large US-made SUVs, i.e. Murano and Pathfinder. Honda is said to be considering the potential for its own Ridgeline pick-up and Pilot large SUV to be imported from the US. Some reports have suggested that the Acura RSX electric crossover and the new Honda 0 series of EVs could also be sold in Japan, although such reports have been rather vague, suggesting that such exports to Japan are some way from becoming real.
It is difficult to see why significant numbers of Japanese consumers will switch to driving vehicles like the Tundra, Highlander, Pathfinder or Pilot around the streets of Tokyo or Yokohama
It remains to be seen if any of these US-made vehicles will be produced in right-hand-drive format for Japan; if not, it may be questionable how successful US-made vehicles will be in Japan if they are not right-hand-drive. In its initial press communications regarding these reverse imports, Toyota is citing the “outstanding fuel efficiency” of the US-made Camry; a previous version had been imported into the US in low volumes until 2023, when just under 9,000 US-made Camrys were sold in Japan: nearly 291,000 Camrys were sold in the US in 2023 by comparison. The Highlander had been sold in Japan – under the Kluger name – until 2007 but this was made in Japan.
While the potential for US-made models in Japan remains to be proven, imports from India and Thailand are well-established. Suzuki imports the Jimny Nomade (a small SUV which looks like a mini Jeep Wrangler) and the Fronx compact crossover. Honda meanwhile imports the Elevate compact crossover, which is rebadged as the WR-V for sale in Japan. Nissan imports the Kicks sub-compact crossover from Thailand, from where Mazda also imports the CX-3 compact crossover.
Vehicles imported from India and Thailand to Japan take advantage of trade deals between both countries and Japan which mean no tariffs on imported vehicles; and these vehicles also benefit from the high volumes made in India or Thailand and these countries’ much lower manufacturing costs compared to Japan.
Export market challenges for some US vehicle segments
The logic for Honda, Mazda, Nissan and Suzuki importing from India or Thailand is clear: as well as offering much lower costs than Japan, these companies’ factories in India and Thailand have established markets for these models. They are also already making right-hand-drive vehicles. The same cannot really be said for the US. The idea of importing vehicles from the US to Japan came out of discussions with President Trump (or rather his negotiators) and the US’ view that Japan was stopping imports from the US. De-regulating some aspects of the vehicle import process and potentially opening sales channels in Japan will achieve good publicity in the US and make it seem that Japan is giving President Trump a “win”. It is difficult to see why significant numbers of Japanese consumers will switch to driving vehicles like the Tundra, Highlander, Pathfinder or Pilot around the streets of Tokyo or Yokohama. These streets are just too small, unlike, say, the streets of Philadelphia.
