Myanmar Automotive Sector is now under the attention of cars big players after that a new political approach has been shown by the government towards more market oriented policies. Market is still fueled by imported pre-owned vehicles.
According to the Road Transport Administration Bureau, the number of various registered motor vehicles operating in Myanmar stood at 3.6 million, including 3.1 million motorcycles, 308.983 passenger cars, 69.953 trucks, 19.440 buses. It is a very virgin market in a country with a population of roughly 60 million. Huge import taxes and the requirement to pay for imported cars in hard currency made vehicles far too expensive for most people.
With the lifting of import restrictions and the currency reform, the car market is now on the way to reflect real demand.
Actually Myanmar car market is dominated by Japanese second-hand cars from the 1980s and 1990s. Over 80% of cars being driven in the country are between 10 and 20 years old and don’t have service, let alone warranty. Most used cars sell for a whopping $15,000 to $22,000, according to Irrawaddy Magazine.
However, during this year car manufacturers have announced several project s concerning this country, mainly oriented on developing local production a low cost, producing for export in short term and for the future domestic market as soon as it will start growing.
Nissan would be the biggest carmaker so far to start production in the country, having announced the startup of a joint venture with Malaysia’s Tan Chong Motor Holdings Bhd to produce “several thousand” small passenger cars and pickup trucks a year in Myanmar. A Tan Chong affiliate will likely construct an assembly plant that will finish cars using parts shipped from Nissan factories in Southeast Asia and elsewhere.
Japanese car maker Suzuki will resume its vehicle and spare part production in Myanmar after it got approval from the government to set up a new factory and revive its existing plant in Yangon, which was operated as a joint venture with Myanmar’s government between 1998 and 2010, but later closed after an earlier contract expired. Suzuki said it will invest around US$7 million and produce mini-trucks for the local market starting from 2015.
The old plant is situated in the Industrial Zone in South Dagon while the new plant will be located in Thilawa Special Economic Zone. However, Suzuki’s investment is not likely to add a lot to the company overall output. Suzuki’s initial rate of production will be as low as 1,200 vehicles a year. There is currently almost no market for new cars in Myanmar, a Suzuki spokesman said, though demand for secondhand vehicles and spare parts is strong.
The Chinese Chery has commenced assembly of its first cars in Myanmar in June 2013 and plans to build between 3,000 and 5,000 vehicles annually, while India’s Tata opened a showroom in Yangon in April 2013.
Mitsubishi Motors said in January 2013 that it will open three after-sales service centers, while Toyota is reportedly studying vehicle manufacturing in Myanmar. Honda has teamed up with Myanmar Diamond Star to set up sales outlets and is exploring possible investment into car manufacturing.
In April this year, Ford Motor Company celebrated the grand opening of the first authorized Ford dealership in Myanmar. Located in Yangon, the country’s commercial center, the new state-of-the-art facility officially establishes the presence of the Ford brand and global vehicles in the rapidly developing country.
Ford became the first global automaker to announce its brand’s official entry into Myanmar market through an agreement with the RMA Group, an emerging markets specialist with operations across Asia and Africa, and Capital Automotive Ltd., a subsidiary of leading Myanmar conglomerate, Capital Diamond Star Group.
Ford also announced that the base manufacturer’s warranty on all Ford vehicles sold in Myanmar will be an industry leading five years/100,000 kilometers. This offer is astonishing in a country where 99% of cars are without any warranty.
General Motors’ Chevrolet is the second US car brand after Ford to make it onto Myanmar roads. The automotive giant announced that it will open a showroom in the fourth quarter of 2013 in Yangon GM will partner with Alpine Group Singapore and AA Medical Myanmar for the distribution, sale and service of Chevrolet vehicles.
Research, Consulting, Data & Forecast Store
F2M covers intensively this market with several products developed to help any investigation required.
Market Researches in PDF are immediately available for download with study on the market since 2005 and with forecast up to the 2020.
Auto Data in EXCEL are immediately downloadable with annual sales volume, split by month, for all brands and all models distributed in the market. This year data are released year to date, but you will receive a monthly update until the year-end.
All these and more within our Myanmar Store.