Myanmar Vehicles Industry is under restructuring process, imposed by military regime. In 2023 new vehicles sales dropped by 46% as ICE models are progressively banned and EVs incentivized.
Market Trend and Outlook
Myanmar’s economy is projected to grow by just 1% over the year to March 2024, according to the report, Challenges amid conflict. Conflict has escalated across much of Myanmar since October, leading to the displacement of an estimated half a million people, disrupting key overland trade routes and increasing logistics costs.
Consumer prices rose by almost 29% in the 12 months ending in June this year, and the more recent drop in the value of the kyat and escalation in conflict have led to further price rises in the months since. Household incomes continue to be severely strained.
As far as regards the automotive sector, the military team decided in mid 2022 to ban the ICE models to support the fast introduction of electric vehicles, thanks to the “good relations” with Chinese government.
The immediate effect was to dramatically drop down the market penalizing the company which had invested to produce locally, like Suzuki and Toyota. In a second step, started in the second half 2023, the sales of electric vehicles – all imported from China – started to grew up, revitalizing the market.
The number of electric vehicles in Myanmar has increased more than sixfold in a year as the military regime exempts EVs from tariffs and imposes an import ban against gasoline-powered autos.
New EV showrooms have sprung up in the economic capital of Yangon. Some sell Chinese brands such BYD, Neta, MG, while others are empty except for signs that simply say “EV.” Ushering in this change is a provision that went into effect on Feb. 1 that added a requirement to have a showroom when importing EVs.
About 85 companies now hold licenses for EV-related businesses, according to the regime’s steering committee on national EV development. Showrooms without brand names represent operators preparing to enter the EV industry.
While near 2.000 EVs were sold in 2023, the total vehicles market dropped to 3.757 (+46.9%), the lowest level since 2015.
