Mongolia used car market


Before 1990s, the automobile market of Mongolia was dominated by Russian made automobiles, but today, the inclination of Mongolian has shifted towards Japanese and Korean vehicles. It has become common to see Japanese and Korean manufactured vehicles in the country. Out of all, Japanese vehicles currently dominate the market. Motor vehicles in the country range from reasonable small-sedans to big off-road jeeps. The reason for the preference of Japanese vehicles is because of their reliability, efficiency and easy affordability.


The country’s market is growing along with the growing demands for vehicles. Out of all Japanese brands, Toyota is the popular one. Generally, 4WDs are preferred in this mountainous country. Along with these, small hatchbacks are also popular on the country’s roads. According to the statistics of Japan’s Customs Statistics Office, Mongolia has imported 32,910 used passenger vehicles from Japan in 2013, becoming one of the top 10 Japanese used vehicles importers in the world. Automobile sector of Mongolia is very open and is growing very rapidly, thus provides vast opportunities to used car dealers to enter the market.

Importation of both left and right hand drive vehicles is allowed in the country. However, right hand drive vehicles are more common. There is age restriction on used vehicles imported in Mongolia; hence importer should make sure that the vehicle imported should match with the age restriction. There are necessary duties also that are to be paid on the vehicle in order to drive the vehicle on the roads of Mongolia.

Duties and Taxes:-
  • VAT- 10% of the vehicle value+ duties + excise tax
  • Duties- 5% of the value of the vehicle
  • Excise tax is imposed on Passenger vehicles only

    Excise Duty:-
    • Vehicle Engine Capacity (cc)- 1500 or under
      Excise Duty (USD):-
      0-3 years: 500
      4-6 years: 1000
      7-9 years: 2000
      10 years and above: 6000
    • Vehicle Engine Capacity (cc)- 1501-2500
      Excise Duty (USD):-
      0-3 years: 1500
      4-6 years: 2000
      7-9 years: 3000
      10 years and above: 7000
    • Vehicle Engine Capacity (cc)- 2501-3500
      Excise Duty (USD):-
      0-3 years: 2000
      4-6 years: 2500
      7-9 years: 4000
      10 years and above: 8000
    • Vehicle Engine Capacity (cc)- 3501-4500
      Excise Duty (USD):-
      0-3 years: 4500
      4-6 years: 5000
      7-9 years: 6500
      10 years and above: 10500
    • Vehicle Engine Capacity (cc)- 4501 and over
      Excise Duty (USD):-
      0-3 years: 7000
      4-6 years: 7500
      7-9 years: 9000
      10 years and above: 13000

Mongolia is a growing market and hold vast opportunities. Along with used cars, used buses, used motorbikes, used parts and machinery are imported to Mongolia from Japan. Japanese cars are good value as even being used, they comes in good condition. Japan and Mongolia have entered into a free trade agreement that would be good for both the economies. The automobile sector will also get benefited from the agreement. Mongolia mainly imports Japanese used vehicles. In fact, around 45% of Japan export to Mongolia is accounted by used cars. And there are huge assumptions that it will increase more in years to come.

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