Myanmar Vehicles Industry dramatically changed in the 2018, with volumes near doubled already hitting the all-time record. The introduction of several restrictions on right-hand-drive imports and the opening of a new Ford plant has boosted demand.
Myanmar economy grew robustly in Q1 thanks to the industrial sector. However, more recent data suggests momentum has weakened somewhat. Manufacturing operating conditions worsened for the third straight month in September due to drops in output, new orders and employment, as currency weakness dragged on firms’ activity. Moreover, FDI inflows plunged in April–July while international tourist arrivals have been lackluster.
In mid-September, parliament approved the budget for the 2018–19 fiscal year, which will see significant growth in government expenditure compared to the 2017–18 budget. The economy should expand at a brisk pace going forward, thanks to strong regional activity but downside risks are growing and include sizeable twin deficits, exposure to adverse weather conditions, and the possibility that the EU could revoke Myanmar’s preferential market access, which would hamper the external sector.
Myanmar vehicles market is under the effects of the introduction of new rules aiming to progressively change origin of circulating car park, actually generated by the import of used vehicles from Japan, starting up a local industry of small, modern, low consumption-low emission vehicles. As reported in the previous post on this country, a key decision taken by the government was to ban the import of right-hand-drive vehicles and after one-and-half year of “recommended policy” this become a rule since July 2018.
The effect of this law is sharp for Japanese brands and has already drastically reduced the import of used vehicles. Traders had been forced to change their supplier and now import vehicles from ASEAN countries. But the price are not so convenient and now the new vehicles price become competitive.
The steady expansion of new vehicles segment followed in the recent year was dramatically changed in the 2018, with sales really booming.
A key factor to mention is the recent availability of local made models, after the full rump-up of the production in the new Ford assembly plant (Ranger, Everest) in Yangon and the expanded capacity of Suzuki plant (Ertiga, Carry, Ciaz).
In the 2018, Q1 sales have been 3.208 (+99.4%) and Q2 sales 4.127 (+109.8%) before to end the Q3 with 2.763 units (+37.6% with Year to Date figures at 10.092 (+80.8%) already hitting the all-time record volume.
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The competitive landscape is deeply changing with Ford becoming the new market leader, having sold 1.606 units year to date (+308%) overtaking the former leader Toyota, actually in fourth place, behind Suzuki and Nissan.
Research, Consulting, Data & Forecast
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 2022. AutoData 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. See details within Myanmar Store.